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HomeNewsBusinessMarketsAdani Green, Adani Energy Solutions, Adani Total Gas stocks zoom 7-23% as F&O trading commences

Adani Green, Adani Energy Solutions, Adani Total Gas stocks zoom 7-23% as F&O trading commences

Inclusion in the F&O segment not only enhances liquidity for these stocks but also serves as a prerequisite for entry into the Nifty 50 index.

November 29, 2024 / 15:01 IST
Shares of three Adani Group companies--Adani Green Energy, Adani Energy Solutions, and Adani Total Gas jumped as much as 14 percent in early trade on November 29 following their inclusion in the National Stock Exchange’s futures and options (F&O) segment, starting today.
     
     
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    Shares of three Adani Group companies--Adani Green Energy, Adani Energy Solutions, and Adani Total Gas jumped as much as 23 percent in early trade on November 29 following their inclusion in the National Stock Exchange’s futures and options (F&O) segment, starting today.

    NSE MD and CEO Ashish Chauhan previously commented on the inclusion, stating that stocks are added to the F&O segment based on an algorithm. He explained that the inclusion occurs once the stocks demonstrate increased liquidity in trading volumes and grow large enough to qualify for the derivatives segment.

    Among the three, shares of Adani Green tracked the strongest upside, skyrocketing around 23 percent as it extended its upsurge to the third straight session, followed by Adani Energy Solutions' 18 percent gains and Adani Total Gas' near 6 percent upmove.

    The F&O inclusion led to a significant surge in trading volumes for the three stocks, with more than half of their one-month daily traded averages changing hands in under an hour of trading.

    Follow our market blog to catch all the live action

    Meanwhile, inclusion in the F&O segment is mandatory for any stock to qualify for inclusion in the Nifty 50 index. This development follows SEBI's revision of the criteria for the inclusion and exclusion of shares.

    An inclusion to the F&O segment is expected to boost liquidity in these counters and offer investors opportunities for both hedging and speculative trading in the stock.

    Meanwhile, Bloomberg reported on November 29 that Japan’s biggest banks plan to maintain ties to Adani Group chairman Gautam Adani despite US bribery charges, even as other global firms including Barclays Plc are reassessing their exposure to the ports-to-power conglomerate.

    Mizuho Financial Group Inc. expects the latest saga surrounding Adani won’t have a long-lasting impact and intends to continue supporting the group, according to people familiar with the matter. Sumitomo Mitsui Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. also have no plans to pull back and will be open to fresh financing if needed later, people familiar with the matter said, reported Bloomberg.

    Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    Moneycontrol News
    first published: Nov 29, 2024 10:15 am

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