Shares of Adani group companies saw a strong rally on Wednesday morning ahead of the Supreme Court’s ruling on the allegations of accounting fraud and stock price manipulation against the conglomerate.
The apex court bench headed by Chief Justice DY Chandrachud is set to decide on a batch of public interest litigations (PILs) that have sought an independent probe into claims made by US short-seller Hindenburg Research against the Adani group.
Adani Enterprises, the group’s flagship firm, jumped over 6 percent on both the NSE and BSE. By 10:34 am, the stock was trading 6.82 percent higher at Rs 3,132 on the NSE and climbed 6.77 percent to Rs 3,130 on the BSE.
Other group companies like Adani Ports, Adani Total Gas, and Adani Transmission also witnessed robust buying interest, rising over 4-5 percent each in morning trade ahead of the SC verdict.
In its report last month, Hindenburg had accused the Adani group of engaging in stock manipulation, money laundering, and use of tax havens over decades. This led to a massive sell-off in Adani stocks. More than $100 billion in investor wealth was eroded within a few weeks after Hindenburg’s damning report.
The SC bench will decide whether market regulator SEBI alone can probe the allegations or if there is a need for a wider SIT investigation. The judges will also rule if SEBI needs to review its recent changes in rules for foreign investors and disclosure of share pledges made after Hindenburg’s short-seller report rocked Adani shares.
Today’s ruling is keenly watched by investors amid the sharp recovery in Adani stocks this week ahead of the court verdict on allegations termed as “baseless” by the conglomerate.
