Why Adani Group stocks rose 20% in early trade is explained? On Tuesday, shares of the Adani Group saw significant gains, driven by a strong upswing in the conglomerate’s various businesses.
The flagship company Adani Enterprises’ shares increased 10% during the morning trading session. Positive momentum was also seen in other Adani Group companies, with gains ranging from 3% to 20%.
Adani Enterprises surged 10% to approximately Rs 2,447.95 per share at 11:25 am, while Adani Ports jumped 6.32% to Rs 845.85. Adani Power saw a rise of 11.51% to Rs 442.90 per share, while Adani Transmission saw a 16.47% increase to Rs 849.20.
Adani Wilmar saw a rise of 8.82 percent, closing at Rs 344.90, while Adani Total Gas saw a significant increase of 18.6 percent, closing at Rs 637. Furthermore, the share price of Adani Green Energy increased by 11.72 percent to Rs 1,047.85.
Early trading saw significant rallies in shares of NDTV, ACC, and Ambuja Cement, among other Adani Group companies. NDTV reported a 7.78% increase to Rs 221, ACC reported a 3.02% increase to Rs 1,875, and Ambuja Cement reported a 3.73% increase to Rs 429.75.
This increase resulted in a significant increase in the Adani Group’s total market capitalization.
Why did the Adani Group’s stock rise?
Market analysts credit the recent developments in the Supreme Court hearing of the Adani-Hindenburg case on Friday for the increase in Adani shares.
During its hearing, the Supreme Court postponed making a decision on a number of Public Interest Litigations (PILs) that sought an investigation under court supervision into claims of stock market regulatory violations made against the Adani group by US-based short-selling company Hindenburg Research.
According to Avinash Gorakshkar, Head of Research at Profitmart Securities, the increase in Adani shares is a reaction to the Supreme Court’s declaration that there is no cause for concern regarding SEBI’s investigation into the stock manipulation claims made by Hindenburg Research, Business Today reported.
Even though sentiment is still positive, Gorakshkar issued a warning, pointing out that profit booking could cause a sharp decline in Adani Group shares as the surge is primarily sentimental. It is recommended that investors book profits and think about selling in the event of a decline.
On Friday, the Supreme Court was notified by the Securities and Exchange Board of India (Sebi) that more time is not needed for it to finish its investigation into the Adani-Hindenburg case.
Twenty-two of the twenty-four Hindenburg-related cases have already been settled by SEBI; the remaining investigations are reliant on information from foreign regulatory agencies.
The three-judge panel of the Supreme Court, presided over by Chief Justice of India DY Chandrachud, has wrapped up hearings on a number of petitions requesting an investigation into the Adani-Hindenburg case and has asked for written responses by Monday.
