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Adani Power, Transmission Shares Rise 4% After BSE Hikes Circuit Limits

Adani Group commits investments of more than Rs 12,400 crore in Telangana over the next few years.

Shares of Adani Group companies, including Adani Power and Adani Transmission, rose 4% in morning trade on June 7 after the BSE raised circuit limits for four companies in the Indian conglomerate.

The exchange announced on June 6 the revised circuit limits for 477 stocks, including Adani Transmission, Adani Green Energy, Adani Wilmar and Adani Power.

The circuit limit has been revised from 5% to 10% for Adani Green Energy, Adani Transmission and Adani Wilmar. Adani Power’s circuit limit has been increased from 5% to 20%. The changes went into effect on June 7.

Shares of Adani Power were up 4.26% at Rs 274.20 on the BSE at 9:50 am, while Adani Transmission was up 1.67% at Rs 829.70 and Adani Wilmar was up 1.64% at Rs 436.95.

Adani Green Energy was flat at Rs 992.80.  Exchanges use circuit filters to prevent sharp falls or rises in the price of a stock or an entire index. Indian stock exchanges implemented index-based circuit breakers from July 2, 2001, in accordance with the guidelines of the Securities and Exchange Board of India.

The exchange calculates the index circuit breaker limit every day based on the index’s closing price the previous day.

Adani Group shares rallied after a late January report by U.S. short-seller Hindenburg Research accused the group of stock manipulation and other wrongdoing, triggering a stock market slump. The group has denied the allegations.

Adani Power has surged more than 100% from a 52-week low of Rs 132.55 hit in February. Adani Transmission is up 32% from its 52-week low of Rs 630, while Adani Green Energy is up 126%.

Flagship Adani Enterprises has rebounded 140% from its 52-week low of Rs 1,017.10 hit on February 3 this year.

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