Adani Group stocks surge 3-18% following Supreme Court verdict
Adani Group stocks experienced a significant boost in intraday trade today. This comes following the Supreme Court's decision on petitions requesting an investigation into fraud allegations against Adani, as detailed in the Hindenburg Research report. The group's overall market capitalization increased by over Rs. 15 lakh crore, with stocks rallying between 3% and 18%. The SC dismissed key demands of petitioners attempting to hinder the ongoing SEBI investigation into allegations made by Hindenburg.
How did Adani Group stocks perform?
Following the verdict, shares of flagship company Adani Enterprises soared over 9%, while Adani Ports's stocks increased 6% to a 52-week high of Rs. 1,144 on the BSE. Adani Energy Solutions shares surged 18%, and Adani Power reached its 5% upper circuit of Rs. 544.65. Adani Total Gas jumped 10%, Adani Green Energy rose 9%, and Adani Wilmar climbed almost 9%. Additionally, NDTV shares leaped nearly 11%, Ambuja Cements grew 1.21% to touch Rs. 537.20, and ACC advanced nearly 3%.
What did SC say in its verdict?
The SC declared in its verdict, "The power of this court to enter the regulatory framework of SEBI is limited. No valid grounds were raised to direct SEBI to revoke its amendments on FPI and LODR regulations. The regulations do not suffer from any infirmities." The judgment also instructed the Government of India and SEBI to examine if there is any violation of law by the Hindenburg report on short selling and, if so, take action according to the law.
Background of the Adani-Hindenburg case
In January 2023, US-based short seller Hindenburg Research accused the Adani Group of accounting fraud, manipulating stock prices, and improper use of tax havens. These allegations led to a stock market crash for Adani Group shares, wiping out nearly $150 billion in market value at its lowest point. Adani Group has denied all allegations. In March 2023, the SC ordered SEBI to investigate any securities law violations by Adani.
