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Adani Group stocks are in the spotlight today; Here’s why

05 December 20235 mins read by Angel One
The total market capitalisation of Adani Group stocks surged to a record high today, crossing the Rs 13 lakh crore mark.
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Adani Group stocks are surging today, with every stock related to the Adani Group trading higher. This surge is prompting investors to consider investing in them.

We are aware that on January 24, Hindenburg Research released a report alleging that the Adani Group, a prominent conglomerate in India, had been involved in a long-standing scheme of stock manipulation and accounting fraud. The publication of this report occurred just days before the scheduled USD 2.5 billion share offering by Adani Enterprises, the conglomerate’s primary company. The report led to a significant decline in all Adani Group stocks previously and affected every stock within the group.

Recent Announcement 

The question arises as to why the Adani Group stock is in the spotlight today. According to a senior US official, the US government concluded that the allegations of corporate fraud made by short-seller Hindenburg Research against billionaire Gautam Adani were not relevant before extending up to USD 553 million to his conglomerate for a container terminal in Sri Lanka.

The allegations outlined in a scathing report by the US-based Hindenburg Research, which wiped out approximately USD 100 billion from the market value of the Adani Group earlier this year, took centre stage as the International Development Finance Corporations, known as DFC, conducted a due diligence investigation of the conglomerate, as stated by an official from the US agency to Bloomberg.

The DFC official, who chose not to disclose their name while discussing the negotiations, mentioned that the DFC was content with the fact that the accusations made in the short-sellers report—claiming that Adani was executing “the largest con in corporate history” did not pertain to Adani Ports & Special Economic Zone Ltd., the subsidiary leading the Sri Lankan project.

The Sri Lankan Port 

The Sri Lankan port deal involving Adani represents one of the most significant and notable infrastructure projects in Asia backed by the US government. This development follows years of American efforts to counter the increasing influence of China in the region due to President Xi Jinping’s Belt and Road Initiative aimed at global infrastructure development.

The Adani Group has refuted the allegations outlined in the Hindenburg report, which include accusations of stock-price manipulation. Despite formal regulatory inquiries and court hearings in India regarding this matter, no wrongdoing has been uncovered. Adani stocks have recently experienced a surge, with Adani Ports and Special Economic Zone Ltd showing over 9% gain so far this year. The Adani Group has promoted the DFC’s investment as a vote of confidence, particularly considering the Hindenburg allegations.

Following this announcement, Adani Group stocks are leading the morning trading session today, with every stock associated with the group trading higher.

Adani Group Stocks Performance

Company Name  CMP Rs  % Change  M Cap Rs Cr  1Yr return %  1mth return % 
Adani Green  1,327.00 18.18 2,10,430.79 -35.25 46.53
Adani Energy Solutions  1,021.55 13.23 1,13,953.15 -62.54 32.86
Adani Total Gas  828.60 13.17 91,938.62 -76.89 50.21
Adani Enterprises  2,790.00 10.31 3,18,356.71 -29.06 25.14
Adani Ports  963.50 9.64 2,07,945.78 7.51 20.69
NDTV  242.55 7.75 1,562.46 -39.02 22.49
Adani Power  496.60 6.89 1,91,940.57 52.79 28.35
Ambuja Cements 506.45 6.73 1,00,553.07 -12.59 19.54
Adani Wilmar  369.00 6.56 47,958.14 -42.67 15.55
ACC  2,145.90 6.27 40,209.01 -18.53 14.83

The total market capitalisation of Adani Group stocks surged to a record high yesterday, crossing Rs 12 lakh crore. As of writing this article, the current market capitalisation of all the group stocks stands at Rs 13,24,848.30 crore. All these stocks have potential for growth as they are currently trading below their 52-week high prices. This could potentially lead to an impressive rally, and the recent news seems to be contributing to the upward momentum for Adani Group stocks.

Investors should keep an eye on these stocks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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