2 stocks of Adani Group will move to ASM Stage-1 category from Monday

BSE And NSE has said in its circulars that the two securities will be moved from March 20 to Stage I of the long-term ASM framework Stage II.

Last week, both NDTV and Adani Green Energy The long term ASM framework from Phase I was placed under Phase II.

Yesterday, three shares of the ports-to-power group were removed from the short-term ASM framework of the National Stock Exchange. These included Adani Power, Adani Wilmar and Adani Enterprises respectively.

Last month, Adani Ports and SEZ, and Ambuja Cements were also placed under short-term additional monitoring measure to control stock volatility.

ASM is an initiative of SEBI and the exchanges in which securities are moved to either short term or long term framework to protect the interest of the investors. The Adani Group stock has been placed under the ASM framework due to high volatility following the Hindenburg report.

In short term ASM, there are two phases. Stocks are applicable for a minimum period of 5/15 trading sessions in each leg and are eligible for review from the 6th/16th trading day.

Securities are further monitored and taken in trade-to-trade (T2T segment) and 100% of the traded value will be blocked as margin, which means no intraday leverage is offered.

The parameters for shortlisting securities under the ASM framework include high-low divergence, client concentration, number of price band hits, close-to-close price divergence and price earnings ratio.

On Friday, seven shares of Adani Group closed on the green mark while four closed on the red mark.

Shares of Adani Transmission closed up 5 per cent. 1024.85, and Adani Wilmar closed up 1.52% 427.35 on BSE.

Market valuation of Adani Transmission increased 1,14,321.27 crore, and that jumped to Adani Transmission 55,541.77 crores.

Adani Power closed up 1.20% 199.95, and Ambuja Cements ended on a flat note 378.25 each share.

Also, the shares of the flagship firm Adani Enterprises Ltd. (AEL) received 1.88% to be settled 1,877.15 on exchange.

Apart from this, the stock of Adani Green Energy closed with a gain of 4.99 percent. 816.80. However, NDTV closed down by 1.63%. 205.70.

The 30-share BSE Sensex advanced 355.06 points, or 0.62%, to close at 57,989.90. The broader NSE Nifty ended 0.67% higher at 17,100.

After taking a beating on the exchanges, the group’s shares had corrected following a report by US-based short seller Hindenburg Research. However, the shares of the group declined in the last few trading sessions amid a sluggish broad market trend.

The report made several allegations against it, including fraudulent transactions and share-price manipulation.

The group has dismissed the allegations as false, adding that it complies with all laws and disclosure requirements.