shares of Adani Group Companies rally with flagships Adani Enterprises Limited It rose 13% on Friday after India’s Supreme Court heard arguments in a case related to an investigation into the group’s share price decline earlier this year.
The surge boosted the ports-to-power conglomerate’s market value by more than $15 billion, the most since Hindenburg Research alleged widespread corporate misconduct against the billionaire in a January 24 report. Gautam AdaniGroup.India’s markets were closed on Monday due to holiday.
India’s top court reserved its verdict on the matter related to the market regulator’s investigation into the Adani-Hindenberg case. During court arguments early Friday, the Securities and Exchange Board of India told the court that it would not seek additional time to complete the investigation into the allegations against Adani Group.
“Some investors may have read the court’s arguments as the regulator found no substance in the allegations and that could lead to a rally in stocks,” said Deven Choksey, strategist at DRChoksey Finserv.
All 10 group companies advanced, with Adani Total Gas Ltd rising nearly 20% and Adani Energy Solutions Ltd rising 19%. Adani Enterprises is set for its biggest surge since May 23.
“The mood among money managers has been to minimize all downsides and go long, so I am not at all surprised by today’s move,” said Abhay Agarwal, fund manager at Piper Serica Advisors Pvt Ltd. The top court’s statement about the regulator’s probe was definitive, he said, but the stock rally today “seems more about a short squeeze”.
Adani Group’s market value of $138.4 billion is still about $97 billion below the level it was before the US short sellers released their scathing report that accused the group of long-running stock manipulation and accounting fraud . The group has repeatedly denied all wrongdoing.
The surge boosted the ports-to-power conglomerate’s market value by more than $15 billion, the most since Hindenburg Research alleged widespread corporate misconduct against the billionaire in a January 24 report. Gautam AdaniGroup.India’s markets were closed on Monday due to holiday.
India’s top court reserved its verdict on the matter related to the market regulator’s investigation into the Adani-Hindenberg case. During court arguments early Friday, the Securities and Exchange Board of India told the court that it would not seek additional time to complete the investigation into the allegations against Adani Group.
“Some investors may have read the court’s arguments as the regulator found no substance in the allegations and that could lead to a rally in stocks,” said Deven Choksey, strategist at DRChoksey Finserv.
All 10 group companies advanced, with Adani Total Gas Ltd rising nearly 20% and Adani Energy Solutions Ltd rising 19%. Adani Enterprises is set for its biggest surge since May 23.
“The mood among money managers has been to minimize all downsides and go long, so I am not at all surprised by today’s move,” said Abhay Agarwal, fund manager at Piper Serica Advisors Pvt Ltd. The top court’s statement about the regulator’s probe was definitive, he said, but the stock rally today “seems more about a short squeeze”.
Adani Group’s market value of $138.4 billion is still about $97 billion below the level it was before the US short sellers released their scathing report that accused the group of long-running stock manipulation and accounting fraud . The group has repeatedly denied all wrongdoing.
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