Adani Wilmar shares in lower circuit for third time in a row

Adani Wilmar share price opened lower and went on to make an intraday low of 631.65 per share, hitting the lower circuit for the third consecutive session. Rising input costs and lower edible oil prices in the domestic market may continue to dictate edible oil maker stocks, and thus one should avoid taking new positions on the counter.

Adani Wilmar’s share has plunged following the central government’s decision to exempt customs duty and Agri cess on yearly imports of crude soyabean and sunflower oil until March 2024. Today, the Adani Wilmar share price opened lower and went on to make an intraday low of 631.65 per share, hitting the lower circuit for the third consecutive session.

According to stock market experts, rising input costs and lower edible oil prices in the domestic market may continue to dictate edible oil maker stocks, and thus one should avoid taking new positions on the counter.

Exemption on Custom duty and Agri Cess

“To contain domestic inflation and rising edible oil prices. The Government of India (GoI) has announced the exemption on customs duty. And Agri cess on yearly imports of crude soyabean and sunflower oil till March 2024. This means, edible oil prices are expected to go down in the near term. Which may lower the quarterly numbers of the company. So, Adani Wilmar shares are expected to remain in a downtrend in the near term. One should avoid taking any fresh position. And those who have this stock in their portfolio should maintain strict stop loss on a closing basis”. Said Avinash Gorakshkar, Head of Research at Profitmart Securities.

Adani Wilmar share price has been under consolidation phase for last one month. In last one month, it has tumbled near 21 per cent. However, the stock is one of the multibagger stocks in 2022 as it has delivered near 135 per cent return to its shareholders in 2022.

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