Adani Power jumps 10% in two days after Reliance Industries’ stake buy in Madhya Pradesh power project

April 03,2024

Adani Power’s share price surged by 5% to hit its upper circuit for the second consecutive session on Tuesday, April 2, despite overall market weakness. Opening at Rs 574.05, a 2.4% increase from its previous close of Rs 560.35, the stock quickly rose to Rs 588.35, the upper price band, on the BSE.

This follows a similar 5% surge in the previous session, attributed to Adani Power’s announcement regarding Reliance Industries, led by Mukesh Ambani, acquiring a 26% stake in a Madhya Pradesh power project owned by Gautam Adani

Additionally, a pact was signed allowing Reliance Industries to utilize 500 MW of electricity from the plants for captive use.

Stocks performance in past one year 

The stock, which hit its 52-week high of Rs 589.30 on December 6 last year and its 52-week low of Rs 185.10 on April 19 last year, has witnessed a significant turnaround. Currently trading at ₹588.35, the stock has surged by nearly 218% from its 52-week low.

In April alone, the stock has already seen an impressive increase of over 10%, indicating a potential reversal from the consecutive declines observed over the past two months.

Adani Power’s share price experienced a decline of over 2% in February, followed by a nearly 3% decrease in March. However, with the recent upward trend, the stock appears poised for a positive conclusion to the month, showcasing a notable recovery.