Adani Group shares rallied on Tuesday, as all 10 group firms ended with gains following Friday’s Supreme Court observation that the Hindenburg report cannot be considered statement of truth.
The group recorded its biggest single-day jump in combined market capitalisation, jumping $12.5 billion on Tuesday. Markets were closed on Monday on account of a public holiday.
The ports-to-power conglomerate’s combined m-cap stood at $135.7 billion as of Tuesday. It had jumped by as much as $15.8 billion to $139 billion in intra-day trade. In fact, this was the conglomerate’s biggest single-day gain in in 19 months, with the previous instance being $15.82 billion on April 11, 2022.
Tuesday’s rally was triggered by the Supreme Court’s decision on Friday to reserve its order in the case pertaining to the Hindenburg report that had caused a bloodbath in Adani group shares in January.
“We don’t have to treat the Hindenburg report as being a statement of truth. There is no means of testing the veracity of the Hindenburg report and hence asked Sebi to probe,” the court said on Friday.
The US short-seller’s report had triggered a slide in Adani group stocks. Following the report, the combined market capitalisation of the group nosedived from $235.2 billion on January 24 (the day of the report), to a low of $82.3 billion on February 27.
Though it has recovered since its February low, it is still half the $270 billion seen on November 15, 2022.
“The court’s decision has come as a shot in the arm. We could see a rally for a few days thanks to the momentum and the likelihood of short-term traders buying into the stocks. But institutional investors are unlikely to buy in a hurry based on this development,” said market analyst Ambareesh Baliga.
Adani Total Gas was the biggest gainer, locked in the upper circuit of 20%, while Adani Energy Solutions (formerly Adani Transmission) jumped 19%. The flagship Adani Enterprises rose 8.7%, while Adani Power, Adani Green, and NDTV all logged gains upwards of 10% each.
During Friday’s court hearing, markets regulator Sebi had informed that it would not seek additional time to complete the probe into the allegations.