Adani Stocks rally up to 20% as US agency DFC finds Hindenburg report 'irrelevant'

Shares of Adani Group stocks rallied sharply higher, surging up to 20 per cent, on Tuesday after the Bloomberg reported US agency concluded accusations against the Guatam Adani-led conglomerate weren’t relevant. The news by the news agency citing US officials pushed the Adani stocks upwards.

According to the report by Bloomberg, a senior US official stated that the US government deemed Hindenburg Research's accusations of corporate fraud against Indian billionaire Gautam Adani irrelevant. This decision was made before approving an extension of up to $553 million for his conglomerate's container terminal project in Sri Lanka.

The focus of the International Development Finance Corp (DFC) during its due diligence investigation of the Adani Group was on the damning accusations outlined in a critical report by US-based Hindenburg Research.

Hindenburg Research's report, which had wiped out about $100 billion in the Adani Group's market capitalisation in January 2023, played a central role in the scrutiny conducted by the US agency, as stated by an official of the Agency. The rise in Adani Group stocks pushed its total market capitalization above Rs 12.5 lakh crore during the day.

Following the update, shares of Adani Enterprises Ltd surged more than 18 per cent to Rs 2,995.80 on Tuesday, before settling at Rs 2,960.10. The flagship firm of Adani Group's total market capitalization topped Rs 3.40 lakh crore mark once again. The stock has surged about 200 per cent from its 52-week lows.

Adani Ports and Special Economic Zone Ltd surged about 17 per cent to hit new 52-week highs at Rs 1,023.90 on Tuesday, but ended at Rs 1,011.85, up 15 per cent. The Nifty50 constituent commanded a total market capitalization of more than Rs 2.18 lakh crore early in the session. The stock has gained 160 per cent from its 52-week lows.

Adani Green Energy Ltd hit an upper circuit of 20 per cent to Rs 1,348 as its total market capitalization surged more than to Rs 2.13 lakh crore for the day. Adani Total Gas shares also gained about 20 per cent to Rs 878.20 with a total valuation close to Rs 1 lakh crore in the early session.

Adani Energy Solutions Ltd also hit an upper circuit of 20 per cent to Rs 1,082.60, while Adani Power Ltd gained 16 per cent to Rs 538.50. Both companies commanded a toal total market valuation close to Rs 1.20 lakh crore and Rs 2.10 lakh crore, respectively. Adani Wilmar hit 10 per cent to Rs 380.90 on Tuesday, with a total mcap of Rs 50,000 crore.

Among the acquired entities, Ambuja Cements was up by more than 7 per cent to Rs 508.70, while another cement player from the Adani pack was up 8 per cent to Rs 2,185 early in the day. The combined mcap of these companies stood at Rs 1.42 lakh crore. New Delhi Television surged over 18 per cent to close at Rs 266.55

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