Adani Group stocks rally despite Hindenburg fallout: Investors await Supreme Court verdict

Adani Group stocks surged on Wednesday, defying market volatility amid the lingering Hindenburg saga. The Supreme Court’s impending verdict on the allegations against Gautam Adani’s empire adds anticipation, given the prior market downturn and substantial investor losses.

Market Highlights 

Today in early trading, Adani Energy Solutions saw the highest percentage gain, rising by 15.55% and reaching an intraday high of Rs 1,244. Adani Total Gas followed closely, which gained 10%, reaching an intraday high of Rs 1,100. NDTV shares surged by 9.9%, hitting a day’s high of Rs 302.5, and Adani Green Energy shares went up by 7.5%, touching an intraday high of Rs 1,745 each.

Meanwhile, Adani Enterprises, the flagship company of the Adani Group, rallied by 6.5%, reaching an intraday high of Rs 3,178. Adani Wilmar shares jumped by 7.2%, hitting the day’s high of Rs 397.8, and Adani Power recorded a 5% upper circuit, reaching Rs 544.5. Notably, Adani Ports and Ambuja Cement share prices reached new 52-week highs of Rs 1,125 and Rs 541.45 respectively. Lastly, ACC shares climbed by 1.6%, reaching an intraday high of Rs 2,332.

Post-2023 Recovery and Optimism for 2024 

By the end of 2023, only Adani Power and Adani Ports had rebounded from the Hindenburg controversy. The New Year brought optimism among investors as Adani stocks showed signs of reclaiming pre-Hindenburg levels. The outlook for 2024 appears positive, with investors closely monitoring recovery efforts.

Supreme Court Verdict 

The awaited Supreme Court verdict, scheduled for today, revolves around petitions related to the Adani-Hindenburg matter. The Hindenburg report accused Adani of stock manipulation, causing significant declines in 2023. Despite this, Adani raised substantial funds, totalling Rs 41,500 crore in 2023.

Global Investments and Mergers in 2023 

Global investors, including GQQ Partners, QIA, and Total Energies, played a crucial role in acquiring Adani shares. Adani’s promoters infused Rs 4.5 billion for loan repayment and green investments. In 2023, key mergers and acquisitions, such as Sanghi Cement and stakes in Indian Oil Tanking, showcased strategic moves amid market challenges.

Ongoing Adani Hindenburg Case

The Supreme Court’s involvement, directing SEBI to investigate short sellers’ allegations in March 2023, aimed to protect investors. The awaited verdict signifies a critical juncture in resolving the Adani Hindenburg case, influencing market perception and stability.

Conclusion 

Adani Group stocks have rebounded from Hindenburg-induced losses, with some reaching new highs. The overall market capitalisation, at Rs 15 lakh crore, has recovered but remains below the peak. The financial landscape awaits the Supreme Court’s verdict, holding potential implications for Adani’s future trajectory in the stock market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.