Mining scam: Adani stocks surge

Adani Enterprises' stock settled 8.82 higher at Rs 637,after witnessing massive fall.

Shares of Adani Enterprises,as also its two group companies,today bounced back on the bourses with hefty gains,as the company denied its involvement in mining scam in Karnataka.

Adani Enterprises8217; stock settled 8.82 per cent higher at Rs 637.80 on the BSE,after witnessing massive fall in the previous trading session on Friday.

In the last trading session,the stock nosedived by 21 per cent.

Shares of Adani Power also rose by 4.03 per cent,while that of Mundra Port amp; SEZ gained 0.97 per cent.

Commenting on the company8217;s stock movement,Deven Choksey,MD of leading brokerage firm KR Choksey said,8221;The selling pressure in Adani Enterprises8217; scrip on Friday was unnatural and not based on any fundamentals8221;.

8220;AEL has a robust business model and continues to create value for all its stakeholders. The fundamentals of the company are strong and the rebound in the stock price today proves that the panic selling on Friday was a knee-jerk reaction.8221;

Market analyst,SP Tulsian said,8221;The Lokayukta report will not affect Adani Enterprises share price. The company does not own any iron ore mine in Karnataka,therefore there is no negative impact on the company8221;.

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Chief Financial Officer CFO of Adani Enterprises,Devang Desai said,8221;Our company has no iron ore mine in Karnataka or anywhere else in the country. AEL is only one of the four port operators providing services at Belekari8221;.

8220;We pay port charges to the government and render services related to storage and handling of cargo. All the responsibility of approvals relating to mine permits and transportation lie with the miner and ore exporter,8221; he said.

8220;AEL as a port operator has only contractual responsibilities of rendering port service of storage and handling like any other port operator in the country. AEL has rendered these services in compliance of all rules and regulations laid down by the Port and Customs authorities,8221; he noted.

Desai further clarified that AEL is not aware of any alleged gratifications as referred to in the Lokayukta report and strongly denied its involvement in any way.

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Rise in the stock was in-tandem with the overall bullish broader market trend,with the BSE key index Sensex ending 117.13 points higher at 18,314.33.

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