Strong selling by foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) is expected in Adani group stocks – Adani Total Gas and Adani Transmission – on Monday. According to stock market experts, this sell-off is expected after MSCI’s decision to reduce the free float in these two. Adani Group Shares, Experts said FIIs and FPIs investing in index funds follow MSCI and their exposure to these two Adani stocks is expected to come down based on MSCI’s action. Hence, there could be heavy selling by FPIs and FIIs when the Indian stock market opens on Monday.
Why do experts predict FII, FPI selloff?
Commenting on the impact of MSCI’s action, Avinash Gorakshkar, Head of Research, Profitmart Securities, said, “FPIs and FPIs that invest in index funds follow MSCI’s free float exposure. As MSCI has announced Adani Total Gas and Adani Having announced lower free float in transmission from 25 per cent to 14 per cent and 10 per cent respectively, these foreign investors are expected to offload their stake in these two Adani Group stocks in the near term.
However, Avinash Gorakshkar said that the fall in Adani Total Gas shares and Adani Transmission share price is limited as these two Adani Group stocks have already taken a heavy hit following the Hindenburg Research report, in which Adani Group including Adani Total Gas Concern was raised over the debt position of the companies. and Adani Transmission.
What does the chart pattern suggest for these Adani Group stocks? Anuj Gupta, Vice President – Research at IIFL Securities Said, “Adani Total Gas shares are facing stiff resistance 990 level due to levels of double top range. It was not able to break that level last week. So, now some correction is expected in the stock and Adani Total Gas share price may go down further. 880 level. if it violates 880 support, it may go further down 820 each level.”
with respect to pivot levels Adani Transmission Shares, Anuj Gupta said, “The technical chart of this Adani group stock is not looking positive. Adani Transmission shares are facing resistance.” 1100 each level. This share of Adani has been supported 900 level and breaking this support, Adani Transmission shares may move lower 900 more 880 each level. On the upside, if the stock breaks its resistance, it could go higher 1200 more 1300 each level.”
MSCI on Friday announced that it will reduce the free float of two Adani Group companies – Adani Total Gas and Adani Transmission from 25 percent to 14 percent and 10 percent, respectively. Free float is defined as the proportion of outstanding shares available for purchase in public equity markets by international investors.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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