Shares of Adani Power fell 10 per cent in two trading sessions as investors booked profit ahead of their inclusion in the Morgan Stanley Capital International (MSCI) index. The global index provider had announced changes to the index in mid-May. Adani Power along with other stocks was among the additions to the index. However, the announcement did not include changes to the weightings of individual stocks in its indexes.
The changes came into effect at close of trading on Tuesday.
The stock, which closed at Rs 242.45 on May 12 before the MSCI inclusion announcement, rose to an all-time high of Rs 344.75 on May 30 translating into a gain of 42.19 per cent for investors.
Adani Power stock saw profit-booking in the last trading session, ending 5 per cent lower at Rs 323.75 against the previous close of Rs 340.75 on BSE.
ALSO READ: Adani Wilmar stock slips 5% in afternoon trade, here's why
The Adani Group stock extended losses in the current trading session, falling 5 per cent to Rs 307.60 on BSE. The large cap stock opened with a loss of 4.06 percent at Rs 310.60 today. A total of 9.15 lakh shares of the firm changed hands, amounting to a turnover of Rs 28.36 crore. Market cap of the firm rose to Rs 1.18 lakh crore on the BSE.
Pavitraa Shetty, Co-founder & Trainer, Tips2Trades said, "Despite excellent Q4FY22 results and a brilliant full year, Adani Power stock was extremely overbought and time was ripe for a correction. Technically, Rs 290 is an immediate support below which Rs 270 also is a possibility. Immediate resistance is at Rs 316."
Adani Power stock is trading higher than 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages. The stock has gained 222 per cent in one year and risen 208 percent since the beginning of this year. The stock hit a 52-week low of Rs 69.95 on August 24, 2021 and touched an all-time high of Rs 344.75 on May 30, 2022.
MSCI announced the list of additions and deletions for May 2022 rejig on May 13. The global index provider MSCI (Morgan Stanley Capital International) rejigs its components semi-annually and quarterly.
MSCI included four Indian stocks - Adani Power, AU Small Finance Bank, Jindal Steel and Power, and Tata Elxsi. It excluded HDFC AMC. The changes have come into effective from June 1, while index funds realigned their portfolios on May 31.
The Adani Group firm reported a stellar set of earnings for the quarter ended March 2022.
Adani Power reported a multi-fold rise in consolidated profit after tax (PAT) at Rs 4,645 crore in Q4 of last fiscal against a net profit of Rs 13 crore in the year-ago period. Consolidated total revenue zoomed 93 per cent year-on-year (YoY) to Rs 13,308 crore as against Rs 6,902 crore in the corresponding quarter of last fiscal.
The consolidated EBITDA, or earnings before interest, taxes, depreciation, and amortisation rose 271 per cent to Rs 7,942 crore from Rs 2,143 crore in the corresponding quarter last year.