Adani Ports and SEZ Limited, led by Gautam Adani, have reassured the safety of their business in the wake of the recent Hamas attack and conflict in Israel. The Indian private port operator stated that they are closely monitoring the situation, emphasizing that Haifa port, which they acquired earlier, is located in North Israel, away from the concentrated conflict in the South.
However, Adani Ports’ shares experienced a drop of up to 4.7% as investors expressed concerns about the potential escalation of the Israel conflict. On the Nifty 50 index, the company’s stocks were trading at ₹792, down by 4.6% at 3 pm.
Adani committed to safety of employees:
Adani Ports affirmed their commitment to the safety of their employees, assuring that all staff members are secure. They also mentioned having a business continuity plan in place to respond effectively to any unforeseen events.
It’s worth noting that Haifa port’s contribution to Adani Ports’ overall cargo volume is relatively small, accounting for only 3%, according to the company.
Haifa port, a crucial hub for trade and tourism in the Mediterranean, handles approximately 99% of Israel’s maritime goods. The recent Hamas attack has raised concerns among investors about geopolitical risks, causing pressure on Israel-related stocks and leading to a significant surge in oil prices, along with a decline in US equity futures during Asian trading.
Conflict spreading throughout Middle East region remains substantial risk
The possibility of the conflict spreading throughout the Middle East region remains a substantial risk.
Gautam Adani, the chairman of the Adani Group, had previously expressed intentions to make further investments in Israel with the aim of transforming the port landscape. Israel viewed the deal with Adani Ports as a significant display of trust by entrusting its strategic assets to Indian companies.
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