Why Adani Power share price is skyrocketing today, explained

Stock market today: Adani Power share price witnessed a significant surge during morning deals. Adani Power share price today opened with an upside gap at ₹749.90 per share on NSE. It touched an intraday high of ₹790 apiece within a few minutes of the opening bell, logging an intraday rise of nearly 9 percent against Wednesday's close of ₹726.65 apiece. This surge is attributed to the expert analysis of stock market professionals, who have noted that Adani Power share price is skyrocketing today due to the Adani group company's complete takeover of Mirzapur Thermal Energy (MTE) in UP.

Triggers for Adani Power share price rally

Speaking on the reasons that are fueling Adani Power share price, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "Adani Power has informed Indian exchanges that Mirzapur Thermal Energy in UP has become a subsidiary company of Adani Power after the allotment of preferential shares of MTE to Adani Power. The Adani group company has completed the takeover of MTE, which will boost the fundamentals and balance sheet of Adani Power. This has triggered fresh buying in Adani Power shares."

Also Read: Gold price jumps as US dollar rate, treasury yield slip; US Fed rate in focus

Adani Power share price target

When asked about the future of Adani Power shares, Sumeet Bagadia, Executive Director at Choice Broking, expressed a positive outlook, stating, "The upward trend in Adani Power shares is expected to continue, as indicated by the chart pattern. Shareholders are advised to hold the stock, setting a stop loss at ₹730, with a near-term target of ₹850. This optimistic forecast should instill confidence in investors."

Also Read: Nifty 50 continues its wild swings; how should investors play this volatility?

On a suggestion to fresh investors regarding Adani Power shares, Bagadia said, "One can buy Adani Power shares at the current level for the short-term target of ₹850. However, one must maintain a stop loss at ₹730."

Choice Broking's expert reiterated the advice for Adani Power shareholders and new investors, stating, “It is advisable to maintain a buy-on-dips strategy for Adani Power shares as long as the stock remains above the ₹730 per share level.”

Adani Power news

In an exchange filing, Adani Power said, "Concerning the captioned subject, we would like to inform you that the Company has been allotted 50,00,000 equity shares of Rs. 10/- each by Mirzapur Thermal Energy U.P. Private Limited ("MTEUPL") on preferential basis resulting in a 99.8% equity stake in MTEUPL. Consequently, MTEUPL has become a subsidiary of the Company."

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.