Adani Group stocks climb up to 11% after SC dismissed petitions filed on Adani-Hindenburg

Shares of Adani group companies bucked the overall weak market and soared upto 11 percent after the Supreme Court disposed petitions filed on Adani-Hindenburg issue to initiate a Special Investigation Team (SIT) or CBI probe.

The apex court said that there was no ground made out to quash the FPI regulations, which resulted in sharp declines in share prices earlier. “No valid ground raised to revoke amendment to FPI, LODR recommendations, SEBI directed to complete remaining 2 probes within 3 months,” the Supreme Court said on January 3, 2024.

Shares of the flagship Adani Ports and SEZ and Adani Enterprises rose 2 percent and 5 percent, respectively to clench the spot of top gainers on the Nifty 50. Other Adani group stocks, Adani Wilmar, Adani Green Energy, Adani Power, Adani Total Gas and Adani Energy Solutions were up 3-11 percent.

The top court’s verdict comes over a month after it reserved its judgment in November on a batch of petitions regarding the allegations of stock price manipulation by the Adani Group.

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Other Adani Group stocks including NDTV, ACC and Ambuja Cements were also trading with gains of up to 6 percent.

On March 2, 2023, the apex court asked market regulator SEBI to continue its probe into the allegations arising out of the Hindenburg report. The SEBI was tasked to examine “whether there was any manipulation of stock prices in contravention of existing laws.”

A three-judge bench headed by Chief Justice D.Y. Chandrachud reserved a verdict in the case in November last year.

The SC recently noted that the Hindenburg Research report should not be treated as a statement of truth. It suggested that the apex count cannot doubt Sebi’s probe into the case by relying merely on a few media reports.

Also Read | Adani-Hindenburg case: SC to deliver verdict today on petitions seeking probe into stock market violation allegations

Adani Group stocks have rebounded after plunging as much as 80 percent in the aftermath of the Hindenburg report. While stocks like Adani Ports have recovered all of their Hindenburg losses and are trading at newer highs, other group companies have managed to narrow their losses.

The overall market capitalisation of the Adani Group is back above the Rs 15 lakh crore mark, but remains significantly below the peak of Rs 23 lakh crore. However, the overall market capitalisation has managed to triple from the record low of Rs 5.8 lakh crore, hit during the Hindenburg saga.

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