Adani Group shares extend rally; Adani Enterprises zooms 42% in 3 days

Shares of Adani Group companies were trading higher for a third straight day on Tuesday after an interim report by the Supreme Court (SC)-appointed panel last Friday did not find any conclusive evidence to support allegations made by the US-based short seller Hindenburg Research.

Among individual stocks, Adani Enterprises, the flagship company of Adani Group, was locked in the temporary 15 per cent upper circuit at Rs 2,675 on the BSE at 09:34 am. In the past three trading days, the stock has zoomed 42 per cent from a level of Rs 1,888 on Thursday, May 18. The stock is in future & option (F&O) segment, which doesn't have any circuit limit.

Adani Wilmar, too, was locked in the 10 per cent upper circuit at Rs 488.80, surging 29 per cent in the past three trading days. Adani Power (Rs 260.40), Adani Transmission (Rs 866.60), Adani Green Energy (Rs 989.50), Adani Total Gas (Rs 757.40), and New Delhi Television (NDTV) (Rs 195.75) were locked in the 5 per cent upper circuit for a second straight day and only buyers being seen on these counters.

Adani Ports and Special Economic Zone (up 8 per cent at Rs 785.90), Ambuja Cements (3 per cent at Rs 437.50) and ACC (2 per cent at Rs 1,859.80) among other Adani Group stocks were trading higher on the BSE. In comparison, the S&P BSE Sensex was up 0.34 per cent at 62,177.

The Supreme Court's six-member panel said that "prima facie it would not be possible to conclude if there has been a regulatory failure around the allegation of price manipulation in the Adani scrips" in the Adani-Hindenburg case. It has recommended that all investigation be completed in a time-bound manner.

Meanwhile, the SC-appointed committee has said that market regulator Sebi and the Enforcement Directorate have found evidence of short selling and profiting following the Hindenburg Research's report publication on January 24. The agencies are investigating the role of six entities which indulged in short selling.

Analysts said that the SC panel's findings have boosted investor confidence towards the beleaguered port-to-power conglomerate.

They said the report is the beginning of a significant step forward for the group and will help the Gautam Adani Group push ahead with its proposed fundraise plan.

Adani Enterprises, on May 13, had said its board approved a plan to raise up to Rs 12,500 crore from the market. The company said in a statement that it plans to raise the funds via selling equity shares through qualified institutional placement or other permissible mode.