India Watch Daily

Continued buying in Adani stocks leads to an increase of around 18% in morning trading for Adani Enterprises

After a Supreme Court-appointed panel found no evidence of stock price manipulation in the group companies and a separate Sebi investigation into alleged violations of money flows from offshore entities came up empty, all Adani Group stocks continued to rise, with Adani Enterprises rising nearly 18% on Tuesday morning.
Adani Enterprises' shares skyrocketed 17.65% on the BSE.
Adani Wilmar shares increased by 9.99 percent, Adani Ports by 7.71 percent, Adani Power by 5%, Adani Transmission by 5%, Adani Green by 5%, Adani Total Gas by 5%, and NDTV by 4.99 percent.
Ambuja Cements' stock increased by 4%, while ACC increased by 2.87 %.
During the early session, a few group stocks also reached their upper circuit boundaries.
The 30-share BSE benchmark increased 238.21 points, or 0.38 percent, to quote at 62,201.89 in early activity on the equities market.
Since Friday, shares of the Adani Group have increased.
However, the six-member panel said there was evidence of a build-up in short positions on Adani Group shares prior to the publication of a research by US-based short seller Hindenburg Research that alleged fraud, stock manipulation, and money laundering at the apples-to-port company.
After prices fell after the disclosure of the damaging claims, holdings were squared off for profit.
The committee, led by former Supreme Court justice AM Sapre, concluded in its 173-page report that there was “no evident pattern of manipulation” in the sharp stock price increase in billionaire Gautam Adani's companies that could be attributed to “any single entity or group of connected entities” based on information from the Securities and Exchange Board of India (Sebi).
The panel said in the report that it was impossible to determine if there had been regulatory failures involving pricing manipulations.
The Supreme Court established the expert committee on March 2 to look into possible failures to disclose transactions with related parties and potential stock price manipulation after the Hindenburg report sparked a political controversy and sent the conglomerate's stocks into a tailspin, knocking Adani down to third richest man in the world.
The committee was expected to operate in tandem with Sebi's investigation of foreign investors in the Adani Group.
Even if the report is not the last word, Adani's empire is undoubtedly relieved.
The Supreme Court expert panel stated that “at this stage, taking into account the explanations provided by Sebi, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation, and this has caused Adani stocks to rise.
Investors must have felt confident buying the undervalued stocks because of the panelists' high honesty, according to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

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