Trade restrictions on Adani Ent stock set to be lifted

During the period of high volatility, the exchange takes such measures as placing stocks under the ASM framework to protect investors from any speculative trading too. However, with reduced volatility, the stock moving out of the ASM framework would mean less stringent rules like the removal of the 100% margin requirement for intraday traders.

The group stocks had remained under pressure and volatile since the Hindenburg report raised concerns around the group on 24 January. The group, however, got a respite with the US-based investment firm GQG partners investing ₹15,446 crore in four Adani stocks last Thursday. The same has helped reduce major concerns of the investors, leading to the stock rebounding almost 23.5%.

The investments helped create a kind of floor for Adani group stocks since a marquee investor has invested in them at these prices. Also, promoters can use the money raised through the transaction to infuse capital in any group company requiring the funds through warrants, rights issues, or any other instrument, the analysts said.

Analysts also said that the development would lead to better sentiments for the market and increase retail participation, which was down due to uncertainty.

The investment also leads to a belief that the Adani group stocks have stabilized and can raise capital if they want at current prices.

The other two group stocks that had been placed under the ASM framework, Adani Ports & Special Economic Zone and Ambuja Cements, had already been moved out of the ASM framework in February itself.