More than 10 months after being rattled by Hindenburg Research’s report, it was indeed the happiest day for Gautam Adani and his conglomerate Adani Group’s stocks yesterday.
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What Happened To Adani Stocks?
Adani Group stocks on Tuesday jumped up to as high as 20%, making investors richer by Rs 1.19 lakh crore in just one trading session. Yesterday’s trading session was the best one for Adani Group shares since the Hindenburg attack wiped off billions of dollars in late January.
The combined market capitalization of all 10 Adani stocks rose to Rs 11.46 lakh crore in the afternoon session, but they are still way below the Rs 19.2 lakh crore market cap seen a day before the Hindenburg report was released, as per the ET report.
Shares of Adani Total Gas were the top gainer in the pack and up about 20%, followed by a 10–17% upside in Adani Energy Solutions, Adani Green, Adani Power, NDTV, and Adani Enterprises.
Why Did Adani Stocks Jump So High?
The big jump in Adani Group stocks came because investors drew positive connotations from Friday’s Supreme Court hearing in the Hindenburg issue.
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The stock market was closed on Monday on the occasion of Guru Nanak Jayanti and opened on Tuesday.
Last Friday, SC reserved its order on a batch of pleas concerning the Adani-Hindenburg row on allegations of stock price manipulation, saying it cannot ask a statutory regulator to take as a “gospel truth” something that was published in the media.
“We don’t have to treat what is set out in the Hindenburg report as ipso facto (automatically) a true state of affairs. That is why we directed SEBI to investigate. Because for us to accept something that is in the report of an entity that is not before us and whose veracity we have no means of testing, it would really be unfair,” the SC Bench headed by Chief Justice D.Y. Chandrachud said.
While asking the Securities and Exchange Board of India (SEBI) what it intends to do in the future to ensure investors don’t lose wealth due to volatility in the stock market or short-selling, the Supreme Court observed that it would not be proper for it to set up a special investigation team (SIT) on its own without any material before it.
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How Much Did Gautam Adani Get Richer?
As expected after the mammoth gains that Adani group stocks saw on Tuesday, Chairman Gautam Adani’s net worth jumped $6.5 billion in a single day to the current value of $66.7 billion (on the Bloomberg billionaire index). However, his net worth is still more than $50 billion, down from his previous net worth of about $120 billion, which was in January this year until Hindenburg Research’s report came in.
