Adani Group stocks rally ₹1.7L crore after SEBI's clean chit
What's the story
The combined market capitalization of all 10 Adani Group stocks has surged by ₹1.7 lakh crore in just two trading sessions, crossing the ₹15 lakh crore mark on Monday. The jump comes after market regulator Securities and Exchange Board of India (SEBI) cleared billionaire Gautam Adani of any wrongdoing in the Hindenburg case. The news has been a major boost for the conglomerate's shares, especially those of Adani Power and Total Gas.
Stock performance
Adani Power surges on stock split, Morgan Stanley's overweight call
Adani Power shares have witnessed the highest jump of 35% in the last two trading sessions. The spike comes as SEBI dismissed allegations of market manipulation against the company, coinciding with its 1:5 stock split and a bullish note from Morgan Stanley. The brokerage initiated coverage on Adani Power with an overweight call, highlighting it as India's largest private coal-based independent power producer.
Market response
Other group stocks also witness positive momentum
Along with Adani Power, other Adani Group stocks such as Adani Total Gas and Adani Green Energy have also witnessed a significant rise. The former was up by 19% on Monday, while the latter jumped by some 12%. This positive trend in the market response is a clear indication of investor confidence returning to the conglomerate after SEBI's clean chit.
Regulatory relief
SEBI's move ends overhang of fraud allegations
SEBI's move has removed a major regulatory overhang on the Adani Group, which has been reeling under allegations of corporate fraud and stock manipulation since January 2023. The allegations had not only impacted the conglomerate financially but also triggered investigations by SEBI and sparked a national debate on corporate governance standards among Indian business houses.