Symbolic picture only. , Photo Credit: Reuters
All Adani Group stocks extended their rally, with Adani Enterprises climbing nearly 18% on May 23 (morning) after a Supreme Court-appointed panel found no evidence of manipulation of stock prices in group companies, while a A separate Securities and Exchange Board of India (SEBI) probe into alleged violations of money flow from offshore entities did not yield any results. Shares of Adani Enterprises jumped 17.65% on the BSE.
Shares of Adani Wilmar rose 9.99%, Adani Ports 7.71%, Adani Power 5%, Adani Transmission (5%), Adani Green (5%), Adani Total Gas (5%) and NDTV (4.99%). Ambuja Cements stock climbed 4% and ACC climbed 2.87%. Some shares of the group also reached the upper circuit limit during the morning trade.
Read also: Adani shares up 19% after clean chit from SC panel
In the equity market, the 30-share BSE benchmark rose 238.21 points, or 0.38%, to close at 62,201.89 in morning trade. The shares of Adani Group have been rising since May 19.
However, the six-member panel said there was evidence of creation of short positions in Adani Group shares ahead of reports of US-based short sellers. Hindenburg Research Alleged fraud, stock manipulation, and money-laundering in the apples-to-ports group.
Profits were made by closing positions following a fall in price following the publication of damaging allegations.
Read also: The financial jargon in the Adani-Hindenburg saga explained
In its 173-page report, the committee headed by former Supreme Court judge Justice AM Sapre said that based on SEBI data, it did not see any clear pattern of rapid manipulation of stock prices in billionaire Gautam Adani’s companies. Can be attributed to “a single entity or group of connected entities”.
“It was not possible to conclude whether there were regulatory failures with regard to price manipulation,” the panel said in the report.
A political controversy erupted after the Hindenburg report and the group’s shares began a rout, Mr Adani was dethroned as the world’s third-richest person, after the Supreme Court had set up an expert committee on March 2. So that it can be investigated whether there was any failure to disclose the transaction or not. related parties and if stock prices were manipulated.
The committee was to work in parallel with the probe being conducted by SEBI into offshore entities investing in the Adani group. While the report is not the final word, it certainly comes as a relief to Adani’s empire.
“Adani shares have rallied in response to the observation of the Supreme Court expert panel that” at this stage, taking into account the explanation provided by SEBI, supported by empirical data, prima facie, it is for the committee to conclude It would not be possible that there has been a regulatory failure around the allegation of price manipulation”.
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said the high integrity of the panel members would have given investors the confidence to buy beaten-up stocks.