Adani Group Stocks Surge After SEBI Clears Some Allegations

Shares of the Adani Group experienced significant gains on Friday, rising between 1% and 10% following the Securities and Exchange Board of India (SEBI)‘s decision to dismiss certain allegations made by Hindenburg Research. The market regulator’s ruling has provided a boost to investor confidence in the conglomerate, which has faced scrutiny over its financial practices.

The SEBI cleared two of the charges related to stock manipulation against Gautam Adani and his companies. However, 22 other orders remain under investigation. In particular, Adani Total Gas led the gains among the nine listed entities, surging by 10%. Meanwhile, Adani Enterprises, the flagship company, increased by 4.3%, and Adani Power climbed 7.4% after Morgan Stanley initiated coverage of the power producer with an “overweight” rating.

Despite these positive movements, broader stock markets faced a downturn in early trading after a three-day rally. The SEBI’s inquiry was prompted in 2023, following accusations from Hindenburg Research that the Adani Group was involved in using tax havens and concealing related-party transactions. These allegations had a substantial impact, wiping approximately $150 billion off the group’s market value at that time. Nevertheless, many of its stocks have since shown resilience and rebounded.

In response to the SEBI’s findings, Gautam Adani expressed his satisfaction, stating on social media platform X late Thursday, “SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group.”

In addition to the strong performances of Adani Total Gas and Adani Enterprises, Adani Ports rose by 2%, while both Adani Green and Adani Energy Solutions experienced gains of nearly 4% each. The overall positive response from investors indicates a renewed confidence in the Adani Group’s future following the SEBI’s partial clearance of allegations.

As the situation develops, market observers will be watching closely to see how the remaining inquiries impact the conglomerate and its stock performance.