Shares of Adani Group dropped in the early trading session on Tuesday after the company announced a disclosure of a new litigation matter. The company informed about the same through an exchange filing with the bourses after the trading hours on Friday. “Maharashtra State Electricity Distribution Company (MSEDCL) has filed a petition with the Maharashtra Electricity Regulatory Commission (MERC) with respect to the interpretation of the manner in which the in-land transportation cost is to be computed for domestic coal as contained in MERC’s order dated November 28, 2020 pertaining to Adani Power Maharashtra (erstwhile wholly owned subsidiary of the company, amalgamated with the company w.e.f. March 7, 2023) and MSEDCL," said the exchange filing. Shares of Adani Power dropped about 2 per cent during the early trading session on Tuesday, commanding a total market capitalization of more than Rs 2 lakh crore. The stock had settled at Rs 531 in the previous trading session on Friday. The stock had tested its 52-week highs at Rs 589.30 in December 2023. Shares of Adani Power have surged about 220 per cent from its 52-week lows at Rs 166.25 hit in March 2023. The stock has remained flat in the year 2024 so far, while it has gained 40 per cent in the last six months period. The stock is up 10 per cent in the last one month. Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox said that the shares of Adani Power breached the 50-simple moving average (SMA), the price action managed to hold the decline near its 100- SMA placed at Rs 505 level. "The trend has turned sideways, and a major upside is estimated over its 50-SMA barrier placed at Rs 550 level. The breakout would see price heading in the direction of Rs 600 level, while a breakdown below Rs 500 would steer negative bias, turning downward to Rs 450 mark," he said. Adani Power is likely to be among the biggest beneficiaries of the semi-annual rejig of Nifty Indices, which would take place on March 28, with adjustments on Wednesday, March 27. The Adani Group counter may attract inflows of around $45 million, highest due to the NSE rejig. Commenting on Power stocks, BofA Securities remain 'underweight' on the sector on the back of three issues. The overseas said that it sees 100 basis points of power demand moving off the key and execution remains are key but is not priced in. "Rally is mostly driven by value expansion," said BofA Securities.Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.