Adani share prices up 28% in the last month: What is causing this rally?

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Adani stocks rallying

All the Adani group companies are having a field day in the stock markets today. By clocking gains of up to 18%, all the listed Adani entities are on an upward trend.

However, the question arises, what is causing this rally? Did the group win any major order? Did it get any relief from the Hindenburg saga which led to the group losing an estimated Rs 12.4 lakh crores in a span of one month? Did it receive any new investment from foreign investors? Let’s try and decode!

Why are Adani stocks rising today?

The primary reason for the rally in the stocks of Adani group companies today can be attributed to the regulatory relief provided by the Supreme Court appointed expert panel which is probing the Hindenburg allegations.

The Supreme Court remarked that there was lack of evidence of a ‘regulatory failure’ by market regulator Securities and Exchange Board of India (SEBI).

Moreover, the panel also opined that it observed suspicious trading activities which might have resulted in some entities profiting from the crash in Adani stocks.

Adani group stocks: Share price performance

Name1 Month Share Price Performance
Adani Enterprises27.4%
Adani Ports8.7%
Adani Power23.1%
Adani Transmission-14.3%
Adani Total Gas-18.9%
Adani Green Energy6.2%
Adani Wilmar11.2%

(as on 22nd May, 2023)

What caused the fall in the Adani stocks?

On January 24, 2023, Hindenburg Research, a US-based short seller released a report which alleged that the Adani group had manipulated its stock prices, committed accounting fraud and evaded taxes over a number of years.

This caused the share price of the Adani Group companies to plunge heavily. Further, it pushed Gautam Adani to fall in the global rich list to the 89th position from the 3rd position.

Although the stocks have recovered somewhat from the massive decline, it is yet to reach their previous levels.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.