06 Jun , 2022 By : Kanchan Joshi
Adani Transmission share price: After ushering in the new year 2022, Adani Transmission shares gave stellar return to its shareholders till beginning of May 2022. However, from first week of May 2022, this Adani group stock has been under sell-off heat. According to stock market experts, massive sell-off by FIIs, stock trading at much higher valuations and negative sentiments in the secondary markets are the major reasons for Adani Transmission share price tumble. They also said that the stock may continue to remain under consolidation till next big trigger arrived for the stock.
Speaking on Adani Wilmar share price sell-off, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Profit-taking by FIIs, stock trading at much higher valuations than its actual valuations and negative stock market sentiments can be attributed as the major reasons for Adani Transmission share price crash. In May 2022, FIIs have fished out more than Rs450 crore from the Indian markets, which includes their profit-taking in Adani Transmission shares. Its current PE ratio is around 180 whereas sector PE is around 10. So, spurt in negative sentiment triggered mass profit booking in the stock, which led to sharp downside movement in the counter."
Echoing with Avinash Gorakshkar's views, Ravi Singhal, Vice Chairman at GCL Securities said, "In recent months, Adani stocks have remained FIIs' favourites, which put doubts into the minds of SEBI officials. This led to putting Adani stocks under SEBI scrutiny. Hence, profit-booking triggered into the stock after this SEBI action and it further went into the bearish mood when market mood became negative."
On Adani Transmission share price outlook, Avinash Gorakshkar of Profitm art Securities said, "The stock is expected to remain under consolidation phase till next big trigger arrived in the market." He said that the Ahmedabad based electric power transmission company is one of the stocks in focus today as it is set to acquire an operational transmission project owned and operated by Essar Power Transmission Ltd for Rs1,913 crore.
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