In today’s trading, Adani Group stocks saw a fluctuating day.
The Apex Court delivered its verdict. No grounds to axe down the Foreign Portfolio Investor (FPI) regulations were put forth. So no need for a Special Investigation Team (SIT or CBI probe – Court stated this on January 3, 2024. Thanks to the whereabout, stocks had a small crisis; we had a share price decline.
Yet, shares didn’t completely give up. They held to their belts and still managed to achieve gains of up to 7 percent. Adani Enterprises, the early riser, settled for a gain of almost 2 percent by lunchtime while Adani Ports and SEZ inched upwards with nearly half a percent. The other members, yes, of the Adani family, Adani Wilmar, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Energy Solutions, bagged gains ranging from 2-6 percent.
Diving into the past, it was March 2023 when the Supreme Court nudged the Securities and Exchange Board of India (SEBI) to shine a light on the allegations from the Hindenburg report, focusing on potential stock price manipulation. The recent verdict walks to the beat of its own drum, emphasizing the concluding of the remaining two probes in three months By SEBI instead of an SIT.
Adani Group’s stocks, who found themselves down in the dumps with a massive, huge, 80 percent plunge post releases the Hindenburg report, stood up straight since. Although Adani Ports recovered all of its losses, others in the group made strides in reducing their losses as well. The market cap of the Adani Group tripled from the rock-bottom of Rs 5.8 lakh crore to an elegant Rs 15 lakh crore in current times.
On the same day, January 3, Supreme Court decided not to pass along the investigation to a separate SIT, and adhere to SEBI’s jurisdiction. The Court requested SEBI to wrap things up in three months. An examination into whether the Hindenburg report dabbled in short-selling illegal activities, resulting in hurting investors!
The Court also tossed the allegations regarding a conflict of interest with court-appointed committee members. Instead, it encouraged the government and SEBI to mull over the committee’s suggestions on strengthening the interests of Indian investors.
The Hindenburg report, leaked out in January 2023, blew the whistle on accusations of manipulation of stocks and book-cooking scams by the Adani Group. Such a brouhaha caused a substantial drop in share values. However!, the Court advised against putting all eggs in the third-party reports basket, and emphasized SEBI’s capability to solve the mystery.
The recent adjudication brought a sigh of relief to the Adani Group, indicating no impending storm of regulatory or legal risks apart from the ongoing probe by SEBI – reflected in the positive reactions of Adani Group shares. Gautam Adani radiated optimism in global investors regaining trust after the Court’s verdict. He reinforced the group’s commitment to contributing to the growth of India. In sync, Court upheld SEBI’s regulatory position concerning foreign portfolio disclosures. These developments signal consistency in offshore investor regulations, giving Adani Group the ammunition to navigate the market bravely.
Echoes of Supreme Court’s recent ruling, on the side of Adani Group, signal it’s survival. Moreover? Adani’s position as movers and shakers in the market remains unshaken, ready to deal with business ahead.
