Adani Group Stocks Surge as Supreme Court Committee Clears Regulatory Allegations
Shares of companies under the control of billionaire Gautam Adani’s Adani Group continued their upward trend for the second consecutive session on Tuesday. The rally was led by Adani Enterprises (AEL), the flagship company, following the conclusion of an investigation by a committee appointed by the Supreme Court. The committee stated that there was no evidence of regulatory failure regarding the allegations of stock price manipulation.
Five of the ten listed Adani Group equities were trading at or above their upper circuit limits during Tuesday’s early trading. Early trading saw a strong increase of up to 17% for Adani Enterprises. The 5% circuit limitations for Adani Power, Adani Green, Adani Transmission, NDTV, and Adani Total Gas were locked.
With an almost 19% increase on Monday, Adani Enterprises set a record for the year 2023’s largest single-day gains for the Gujarat-based company. The market value of the 10 listed Adani Group companies increased by the current rise to 10,79,277 crore. The market valuation jumped by 1.45 lakh crore in only two sessions from the figure of 9,34,485 crore that was reported at the end of trading on Friday.
The Adani Group stocks received a boost after a committee led by former Supreme Court judge Justice AM Sapre released a 173-page report. The report stated that the Securities and Exchange Board of India (SEBI), the market regulator, found evidence that six entities took short positions before the Hindenburg report was released and profited from closing their positions. SEBI examined any unusual trading patterns occurring around the release of the Hindenburg Report.
According to the committee, “the trading pattern here is suspicious due to the accumulation of short positions in Adani stocks by these entities prior to the Hindenburg Report and the substantial profits they earned by closing their short positions after the Hindenburg report’s publication on January 24, 2023.”
On March 2, the Supreme Court formed an expert committee to investigate alleged violations of market laws by the Adani Group and its listed companies. The committee consists of former SBI chairman OP Bhatt, Justice JP Devdatt, veteran banker KV Kamath, Infosys co-founder Nandan Nilekani, and advocate Somasekhar Sundaresan.
Last week, the apex court granted SEBI a three-month extension until August 14, 2023, to complete its inquiry into the Adani Group-Hindenburg case. SEBI had requested an additional six months to complete the probe, stating that it was necessary “to ensure that justice is served while protecting the interests of investors.”
About Adani Group:
A member of the Adani Group, Adani Enterprises Limited is a transnational holding company with a public listing in India. Its headquarters are in Ahmedabad, and its main activities include coal and iron ore mining and trade.
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