Adani stocks surge 16% after US agency clears Hindenburg charges

Adani Group stocks witnessed a surge on December 6, with reports suggesting a positive turn of events for the conglomerate. The rally, fueled by reassurances from the US International Development Finance Corp (DFC), comes in response to allegations of corporate fraud made by Hindenburg Research against the group led by Gautam Adani.

The DFC conducted due diligence before extending a $553-million loan for a container terminal in Sri Lanka to Adani Group. A senior US official affirmed that the US government considers the accusations by Hindenburg Research irrelevant, further boosting investor confidence in Adani Group stocks.

Adani Green Energy Leads the Surge

Adani Green Energy emerged as the front-runner in the rally, surging up to 16% This follows the company's announcement of securing an additional $1.36-billion funding through a senior debt facility. The stock has witnessed a 70% surge in the last month.

Adani Ports scaled a fresh record high for the second consecutive session, showcasing a robust recovery since the Hindenburg report in January 2023. The stock's recent gains were amplified by a 'buy' call from global brokerage Citi, which raised the target to ₹1,213 per share.

Adani Enterprises Ltd saw a 3% surge, reaching ₹3,154.55 on the National Stock Exchange. The market capitalization surpassed the ₹3.4-lakh-crore mark, marking a 175% surge from its 52-week low. Adani Total Gas gained 15%, hitting a fresh 52-week high of ₹1,033.00, pushing the company's market value above ₹1 lakh crore.

Adani Energy Solutions recorded a 12% surge, while Adani Power stock zoomed over 6%. Adani Wilmar also showed a positive trend with a jump of over 5%. The diverse gains across Adani Group companies highlight the broad-based optimism among investors.

Ambuja Cement stocks extended gains for a second day, rising 2.64% after completing its acquisition of SIL. Jefferies, a brokerage firm, issued a "buy" call on Ambuja Cements post-acquisition, setting a target price of ₹540 per share.

Among Adani Group stocks, NDTV jumped 7%, adding to the 18% gains from the previous session and a total rally of 21% in the last month. However, ACC was the sole stock trading in the red after a previous rise of over 8% on December 5.

Final Words

In the past week, the Adani Group's market value bounced back, soaring by ₹1 trillion after the Supreme Court wrapped up hearings on allegations from an American short seller. The court, while reserving judgment on the probe, advised against treating media reports on the conglomerate as absolute truth.

On Monday, the group's 11 listed stocks gained ₹73,000 crore, a day after the BJP's victories in three states. The market's positive reaction shows optimism, and the Supreme Court's careful stance highlights a measured approach during ongoing investigations.