Adani Power, Adani Total Gas, AESL, To Adani Green Energy: Stocks Rally Up to 30% in 5 Days Amid Iran-US War

Adani Group Stocks Rally: Adani Total Gas, Adani Power, Adani Energy Solutions and Adani Green Energy have rallied sharply over the past five trading sessions, outperforming the broader market despite weak sentiment. The surge in these Adani group stocks comes amid the ongoing Iran-US conflict, which has heightened concerns over global energy supplies and boosted investor interest in power and gas companies.

Adani Total Gas share price was trading 1.16% higher at Rs 613.95 per share on BSE at 12:25 pm. Adani Power share price was up 0.57% at Rs 149.95 per share, whereas Adani Energy Solutions shares were marginally higher, extending gains from the past five trading sessions.

Adani Group's Energy and Power Stocks Rally

Adani Green Energy's share price has surged around 3.32% in the past five trading sessions. Whereas, Adani Total Gas stock has jumped a whopping 30% in past five trading sessions. Adani Energy Solutions stock, though struggling in Friday's intraday trade, has delivered 3.84% returns in the last five trading sessions.

Why Energy Stocks Are Rallying?

The sharp rally in Adani Group's energy-linked stocks comes as part of a wider bullish sentiment prevailing in the power, energy and renewable energy segment. The surge in stocks linked to these segments came amid reports of Liquefied Petroleum Gas (LPG) cylinder supply crunch. The blockade of the Strait of Hormuz due to the Iran-US war has created concerns around oil and gas supply to India.

"Concerns around LPG supply shortages and geopolitical tensions, including risks linked to global conflicts, often highlight the vulnerabilities of traditional fuel supply chains. When such uncertainty rises, investors naturally look toward companies that are building renewable and diversified energy capacity," explained Darshan Rathod, COO, Multyfi. He also added that rising temperatures due to the summer season is likely to boost energy demand in the country and hence raise prospects for the energy and fuel stocks.

Iran-US War Puts India's Energy Supply At Risk

India is facing the direct heat of the Iran-US war as the nation heavily depends upon crude oil and gas supply from the Middle East via Strait of Hormuz. As per Shriram Asset Management Company report, 55-65% of India's LNG imports transit the Strait of Hormuz, with Qatar alone accounting for ~40% of India's LNG imports.

The report mentions that there is no quick alternative as US, Australian and African LNG involves weeks of additional shipping time.

Gas shortages are already hitting industrial end customers in India as India tries to direct the available domestic supplies to priority sectors like households, hospitals and fertilisers. Even in the priority sectors LPG cylinder bookings delays have widely been reported for the lack of adequate gas supplies in India.