Adani-Hindenburg Case Verdict: Adani Group Stocks Rally Up to 12%

In a significant boost for the Adani Group, their stocks rallied up to 12% following the Supreme Court’s verdict on the Adani-Hindenburg case. The court rejected key demands of petitioners seeking to derail the ongoing investigation into fraud allegations raised by Hindenburg Research. This verdict resulted in a substantial increase in the overall market capitalization of the Adani Group, which now stands at over ₹15 lakh crore.

The Supreme Court’s Verdict

 The Supreme Court stated that its power to intervene in SEBI’s regulatory framework is limited. It found no valid grounds to revoke SEBI’s amendments on FPI and LODR regulations. The court advised the government and SEBI to investigate whether the Hindenburg report on short selling violated any laws and take appropriate action as necessary.

Surge in Adani Group Stocks

Following the favorable verdict, several Adani Group stocks experienced a surge in their share prices. Adani Energy Solutions saw a notable increase of 11.60%, closing at ₹1,183.90. Adani Total Gas also experienced a significant surge, with shares rising by 9.84% to ₹1,099.05. Adani Green Energy climbed 6% to ₹1,698.75, while Adani Power closed 5% higher at ₹544.65. Adani Wilmar rose by 3.97% to ₹381.05, and NDTV saw a jump of 3.66% to ₹281.60. Flagship firm Adani Enterprises closed 2.45% higher at ₹3,003.95, and Adani Ports rose by 1.39% to ₹1,093.50. Ambuja Cements and ACC also experienced modest increases.

Overall Market Capitalization

 According to Bloomberg data, the overall market capitalization of Adani Group stocks rose to nearly ₹15.11 lakh crore. This surge in market capitalization reflects the positive sentiment surrounding the Supreme Court’s verdict and the confidence of investors in the Adani Group.

Background and Allegations

The Adani Group faced allegations of market manipulation and accounting fraud following the release of the Hindenburg Research report in January 2023. The report triggered a significant decline in the share prices of various group entities, resulting in the erosion of billionaire Gautam Adani’s personal wealth. The Supreme Court directed SEBI to investigate the allegations and set up an expert committee to review the findings.

FAQs:

1. What was the Supreme Court’s verdict in the Adani-Hindenburg case?

   • The Supreme Court rejected key demands to derail SEBI’s investigation into the fraud allegations raised by Hindenburg Research.

2. Which Adani Group stocks experienced the highest surge in share prices?

   • Adani Energy Solutions saw the highest surge of 11.60%, followed by Adani Total Gas with a 9.84% increase.

3. What does the surge in Adani Group stocks indicate?

   • The surge in share prices reflects the positive impact of the Supreme Court’s verdict and investor confidence in the Adani Group.

4. What were the allegations made against the Adani Group?

   • The Hindenburg Research report accused the Adani Group of market manipulation, accounting fraud, and improper use of tax havens.

5. What action did the Supreme Court recommend regarding the Hindenburg report?

   • The Supreme Court advised the government and SEBI to investigate any violations of law by the Hindenburg report on short selling and take appropriate action.