Rama Krishna Sangem
This is a big Dasara, Deewali bonanza for Gautam Adani. His Adani Group companies continued to rally on September 22 Monday, adding Rs 1.78 lakh crore in market valuation in two days, propelled by heavy buying in listed stocks following markets regulator Sebi’s clean chit in the Hindenburg case.
The regulator’s order, which dismissed allegations of stock manipulation and related-party misuse, has led to optimistic investor sentiment, sending Adani stocks sharply higher for the second day in a row. Shares of Adani Power jumped 19.99 per cent to hit its upper circuit limit of Rs 170.15 apiece on the BSE.
The stock of Adani Total Gas skyrocketed 19.87 per cent, Adani Green Energy zoomed 11.75 per cent, Adani Energy Solutions surged 6.94 per cent, Adani Enterprises Ltd climbed 4.24 per cent, Ambuja Cements rallied 1.43 per cent, Adani Ports went up by 1.17 per cent, NDTV edged higher by 1.12 per cent and ACC (0.30 per cent).
Together, these firms added Rs 1,78,598.41 crore in market valuation in two days.
he rally in the stocks came after Sebi on Thursday concluded its investigation, stating that it found no evidence to support the accusations raised by US-based short seller Hindenburg Research in early 2023. On Friday also, Adani group firms ended higher, with Adani Power surging over 12 per cent.
SEBI clean chit big boost
The Securities and Exchange Board of India’s (SEBI) clean chit to the Adani Group will strengthen investor confidence and may also lead to an upward re-rating for the group, Manish Singh, the chief investment officer at Crossbridge Capital, has said.
Speaking to a business news channel, Singh said, “Investors rely on market regulators to iron out things when questions arise on the legitimacy of a particular business. So, when the regulator steps in and investigates the matter and deems a certain company clean, it gives a big boost to investors’ confidence.”
Hindenburg had claimed in January 2023 that Adicorp Enterprises, Milestone Tradelinks and Rehvar Infrastructure were used to route funds among Adani companies.
SEBI, however, concluded in two separate orders that there were no violations, adding that at the time of the transactions, dealings with unrelated parties did not qualify as related-party transactions, a definition that was subsequently revised. Adani group companies rally is expected to continue for some more time this year.
