The majority of the Adani firm equities reached its upper circuit levels in early trade on Tuesday (May 23), as sentiment towards the firm’s stocks remained positive in the wake of the group receiving a clean bill of health from the Supreme Court (SC) bench. The Securities and Exchange Board of India (SEBI), the market regulator, did not exhibit any “regulatory failure,” according to the panel assembled by the SC to examine into claims made by Hindenburg Research.The committee found “no evident pattern of manipulation” that can be linked to “any single entity or group of connected entities” in the high stock price increase of billionaire Gautam Adani’s enterprises, according to the 173-page study.Investigations are still being carried out, though. SEBI has been granted until August 14 by the Supreme Court to complete its probe into any securities law violations by the Adani Group and any unusual market activity in its stock.
Adani Transmission opened at a 5% upper circuit of 866.60, Adani Green Energy opened at a 5% upper circuit of 989.50, and Adani Total Gas opened at a 5% upper circuit of 757.30. Shares of Adani Power opened at a 5% upper circuit of 260.40.
Adani Ports’ stock increased by approximately 8% in early trading.
The majority of these equities had also posted significant increases during the previous session.On May 22, six out of ten Adani Group equities reached their high points, and the company’s market value increased by $9.7 billion to $122.9 billion from the previous session, the largest since August 30, 2017, when it increased by $10.2 billion to $271.7 billion. Despite Monday’s increase, the market cap as a whole, at $10.16 trillion, is still $9 trillion lower than it was on January 24 when the Hindenburg Research report was released.
The Hindenburg incident had a negative impact on the Adani Group equities. The Adani Group was accused of improperly using offshore tax havens by US short-seller Hindenburg Research in a report dated January 24. The article also raised concerns about the Adani Group’s enormous debt, which caused the Group stocks to plummet.
The equities of the Adani Group firms thereafter experienced a sharp decline.
On May 17, the supreme court granted Sebi till August 14 to wrap up its investigation into the claims raised by the Hindenburg report.