MC A10 index surges 10% to log best day ever amid all round buying in Adani stocks

Signage atop the Adani Group headquarters in Ahmedabad, India, on Wednesday, Feb. 1, 2023. Bonds of the Indian billionaire’s flagship firm plunged to distressed levels in US trading, and the company abruptly pulled a record domestic stock offering after the Adani group suffered a $92 billion market crash. Photographer: Dhiraj Singh/Bloomberg

MC A10 index – a sentimeter of Adani Group stocks – extended the winning run to another day on March 1 thanks to low-level buying in some of the stocks. It was up 10.42 percent to 32.92. This was the best single-day gain since its base date in August 2022.

However, in the last 15 sessions, this is the third close in the green for the index.

The index captures the real-time price movement in all 10 Adani group stocks. The individual companies in A10 have weights in proportion to their total market cap.

All 10 stocks saw buying taking the index higher. The heavy lifting was done by Adani Enterprises again, which surged nearly 16 percent. Adani Green Energy, Adani Power, Adani Total Gas, Adani Transmission, Adani Wilmar and NDTV were locked at 5 percent upper circuit.

The gains come amid some positive commentary from analysts and reports that said that the Group has secured a $3 billion loan from a sovereign wealth fund as the embattled conglomerate seeks to ease concerns about its credit profile after a short-seller attack.

The credit line from the sovereign wealth fund could be upsized to $5 billion, said the two sources cited by Reuters, quoting a memo that was circulated to participants as highlights of a three-day investor roadshow ending on Wednesday.

The identity of the sovereign wealth fund was not disclosed in the memo.

Meanwhile, Aswath Damodaran said high debt at Adani Group was a bad business practice but not a con.