Adani Group Shares Surge on Tuesday following a report by Bloomberg stating that a senior US official concluded accusations against the conglomerate led by Gautam Adani were deemed irrelevant by the US government.
US Agency Clears Adani Group of Fraud Accusations
The International Development Finance Corp (DFC) conducted due diligence on the Adani Group, focusing on allegations of corporate fraud made by Hindenburg Research. The US agency reportedly dismissed these accusations. It paving the way for the approval of a $553 million extension for the Adani conglomerate’s container terminal project in Sri Lanka.
Impact of Hindenburg Research’s Report on Adani Group Shares Surge
Hindenburg Research’s report, which had led to a significant market capitalization loss of about $100 billion for the Adani Group in January 2023. It played a central role in the scrutiny by the US agency. The official stated that the accusations were not considered relevant, leading to a positive shift in investor sentiment.
Adani Group Stock Performance
In response to the news, Adani Group stocks experienced a notable rally:
- Adani Enterprises Ltd: Surged over 6% to reach Rs 2681.75, pushing its total market capitalization above Rs 3 lakh crore.
- Adani Ports and Special Economic Zone Ltd: Jumped more than 5% to hit new 52-week highs at Rs 924.80. It commands a total market capitalization of over Rs 2 lakh crore.
- Adani Green Energy Ltd: Surged about 7% to Rs 1,198, with the total market capitalization exceeding Rs 1.9 lakh crore.
- Adani Total Gas: Gained about 5% to Rs 764.90, with a total valuation close to Rs 85,000 crore.
- Other Adani Group Entities: Adani Energy Solutions Ltd, Adani Power Ltd, Adani Wilmar, and Ambuja Cements, among others, also witnessed positive movements in their stock prices and market capitalizations.
Market Response and Future Outlook
The positive clearance by the US agency regarding fraud accusations provided a boost to investor confidence. This news leads to substantial gains in Adani Group stocks. The conglomerate’s total market capitalization surpassed Rs 12.5 lakh crore during the day, marking a significant recovery from the losses incurred in January 2023. The market outlook for Adani Group stocks appears optimistic following the favorable resolution of regulatory scrutiny.
