Adani stocks surge to cap their best day since Hindenburg report


Adani Group shares rallied and extended gains, buoyed by a report by an Indian court panel that found no conclusive evidence of alleged stock price manipulation US short seller Hindenburg research.
The 10 Adani Shares In Monday’s session, they added about $10 billion to their market value, the most since Hindenburg’s damning report in January. flagship Adani Enterprises ltd Soared about 19%, adding to gains on Friday and closing at the highest level since Jan. 31. Traders said trapped short positions were being aggressively unwound and investors were inclined to place new long bets on the group.
Sentiment towards the conglomerate has changed markedly from the previous week, as concerns over the exclusion of some Adani stocks from the MSCI Inc. indices and potential share dilution from fundraising plans by two companies prompted another sell-off. The market value loss of the ten companies since the Hindenburg report – which has at times passed the $150 billion mark – is currently around $113 billion.

The interim report “helps because fears of further investigations against the group will decrease,” said Deepak Jasani, head of retail research at HDFC Securities Ltd. “He sort of gave the group a clean slate.” While the shift in perceptions from foreign investors will be gradual, it’s a pretty significant step.”
In its 173-page report, the committee said that, based on data from the Securities and Exchange Board of India (SEBI), it saw “no apparent pattern of manipulation” in the soaring share prices at billionaire Gautam Adani’s companies that can” attributed to any single entity or group of related entities”.
This related to a key allegation by Hindenburg, who in his Jan. 24 report claimed offshore shell companies linked to the Adani family had bid up the empire’s shares.

However, the investigations are still ongoing. SEBI itself has been given an August 14 deadline by the Supreme Court to complete its investigation into possible securities law violations by the Adani Group and unusual market activity in its shares.
Investors will also pay attention to the decision on fundraising proposals to be made at the Adani Green Energy Ltd board meeting. is met on May 24th. In the meantime, the changes to the MSCI indices will take effect with the close of trading on May 31st.

Adani Green Energy Ltd., Adani Transmission, Adani Total Gas Ltd. and Adani Power Ltd. climbed past its 5% limit on Monday while Adani Wilmar Ltd. increased by 10%. Adani Ports and Special Economic Zone Ltd. increased by 6.1%.

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