Adani Group shares climbed up to nearly 10% on Wednesday after the Supreme Court dismissed certain petitions related to allegations made by US-based firm Hindenburg Research accusing the conglomerate of violating stock market regulations.
What It’s All About: The Supreme Court asserted on Wednesday that it cannot intrude into the regulatory framework, emphasising that the Hindenburg report or similar documents cannot serve as grounds for initiating a distinct investigation.
The SEBI will proceed with its examination in accordance with the established legal framework, it said. The apex court clarified that there is no evidence suggesting the Securities and Exchange Board of India’s (SEBI) negligence in taking appropriate measures. It also refused to transfer the case from SEBI to the Central Bureau of Investigation.
The Supreme Court’s ruling follows a month-long period of deliberation after reserving judgment in November on a series of petitions related to accusations of stock price manipulation against the Adani Group.
The Supreme Court had previously directed SEBI to continue its investigation into allegations stemming from the Hindenburg report, focusing on potential stock price manipulation.
A three-judge bench, led by Chief Justice D.Y. Chandrachud, reserved judgment on the case in November 2023. The Supreme Court emphasised that the Hindenburg Research report should not be treated as an unquestionable truth, indicating that reliance on media reports alone cannot cast doubt on SEBI’s probe.
Why It Matters: Adani Group stocks have rebounded, recovering from an 80% decline following the Hindenburg report. Although some stocks, such as Adani Ports, have completely recovered and are hitting new highs, other group companies have reduced their losses.
The Adani Group’s overall market capitalization has surpassed ₹15 lakh crore, yet it remains below the peak of ₹23 lakh crore. Nevertheless, the market capitalization has tripled from the record low of ₹5.8 lakh crore witnessed during the Hindenburg saga.
Price Action: In morning trade on Wednesday, here is how Adani Group stocks traded.
ACC Ltd shares traded 0.70% higher at ₹2,283.70.
Adani Energy Solutions… traded 9.68% higher at ₹1,163.50.
Adani Enterprises Ltd shares traded 3.13% higher at ₹3,023.85.
Adani Green Energy Ltd traded 4.08% higher at ₹1,668.00.
Adani Ports shares traded 1.40% higher at ₹1,093.60.
Adani Power Ltd shares traded 3.88% higher at ₹538.90.
Adani Total Gas Ltd traded 7.64% higher at ₹1,077.00.
Adani Wilmar Ltd shares traded 4.58% higher at ₹383.30.
Ambuja Cements Ltd traded 1.21% higher at ₹537.00.
New Delhi Television Ltd shares traded 5.21% higher at ₹285.80.
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