Adani Group stocks rallied for the third straight session on Tuesday after a Supreme Court-appointed panel did not find any evidence of stock price manipulation or violation of minimum public shareholding rules in Adani Group companies. The panel said that it has not found any 'regulatory failures' on the allegations made by the Hindenburg report. Meanwhile, a separate Sebi probe into alleged violation of money flows from offshore entities has "drawn a blank".
In the SC panel report, the committee said, "based on the data from Securities and Exchange Board of India (SEBI), we saw no evident pattern of manipulation in the steep stock-price rise in billionaire Gautam Adani’s companies that can be attributed to any single entity or group of connected entities.”
In January, the Hindenburg report had claimed that offshore shell firms tied to the Adani family were bidding up the empire’s shares.
All Adani Group stocks has been rallying since Friday. In these 3 sessions, Adani Enterprises has soared over 44 percent, Adani Wilmar surged 29 percent, Adani Ports rose 18 percent, Adani Green jumped 16 percent, Adani Power and Adani Transmission advanced over 15 percent each, and Adani Total Gas added 14 percent.
"Adani stocks had corrected hugely after the Hindenburg report. The Supreme Court expert panel in its report said that, at this stage, taking into account the explanations provided by SEBI, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation. The high integrity of the members of the panel must have given confidence to investors to buy the beaten-down stocks. Some short covering also would have contributed to the rally. However, from the valuation perspective, Adani stocks are not undervalued," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Meanwhile, in Tuesday's trade, Adani Enterprises surged as much as 17.6 percent to its day's high of ₹2736.15, Adani Wilmar rallied 10 percent to ₹488.80 and Adani Ports advanced 7.7 percent to ₹785.95.
Adani Power hit its 5 percent upper circuit at ₹260.40. Similarly, Adani Transmission was also at its 5 percent upper circuit of ₹866.60. Adani Green and Adani Total Gas as well were trading at their 5 percent upper circuit of ₹989.50 and ₹757.40, respectively.