Mumbai, Jan 23, 2026, 13:07 IST
- Adani Enterprises dropped roughly 5% on Friday, edging closer to its 52-week low
- The stock saw a sharp swing this week, bouncing back briefly on Thursday.
- Investors remain cautious amid a lofty price-to-earnings ratio and downgraded earnings forecasts
Adani Enterprises dropped 5.2% to 1,978.6 rupees on Friday, giving back some of the previous session’s gains and edging closer to recent lows. The stock swung between 1,968.2 and 2,085.95 rupees, hovering near its 52-week low of 1,965.05, according to exchange data cited by Mint. 1
Indian equities faltered after an initial gain, with the Nifty inching up 0.01% and the Sensex slipping 0.03% in early trade. “There is a bit of tentativeness among large investors due to the persistent foreign fund outflows… weighing on the market,” said Dharmesh Kant, head of equity research at Cholamandalam Securities. 2
Adani Enterprises faces a valuation challenge. Simply Wall St puts its price-to-earnings ratio at roughly 34.2 times, well above much of the Indian market. Analysts also forecast earnings to drop around 10% annually over the next three years. 3
Thursday seemed like a turnaround. The stock climbed 2.7%, closing at 2,086.4 rupees after falling 1.1% the previous day. On Wednesday, it hit a low of 2,004.1 rupees, per historical price data. 4
Despite a bounce on Thursday, the short-term action remains heavy. The Economic Times tracker showed Adani Enterprises falling 5.62% over the past week, with a six-month beta near 2.93 — signaling much higher volatility compared to the broader market. 5
On Wednesday, the stock lingered under pressure around the 2,020–2,060 rupee range, according to the tracker, which showed repeated dips. Sharp swings marked the session, leaving the stock deeply negative over the past three months. 6
Shares of other Adani group companies also reacted to earnings news, fueling volatility among the conglomerate’s listed stocks. Adani Energy Solutions fell over 2% following a drop in quarterly profit. In contrast, Adani Total Gas recorded its first profit increase in five quarters, driven by rising CNG sales. https://m.economictimes.com/markets/stocks/news/adani-energy-solutions-shares-in-focus-after-q3-profit-slips-revenue-grows/articleshow/127229288.cms 7
The market mood has turned sharply, driven by factors beyond individual stocks. “Sentiment improved… encouraged short-covering and risk-taking,” noted Gaurav Garg, an analyst at Lemonn Markets Desk. He highlighted how swiftly global cues can boost risk assets — yet just as fast they can retreat when flows dry up or earnings fall short. 8
Adani Enterprises faces a straightforward short-term risk: its lofty valuation leaves little margin for error, and the stock’s notorious volatility means routine selling could trigger a steep decline. Traders are closely monitoring foreign capital movements, earnings reports across sectors, and policy hints ahead of India’s federal budget due in early February.
