MUMBAI: Stocks of companies belonging to the Adani group rallied as much as 10% in Thursday’s market on the back of news that Hindenburg Research will close down. Nearly two-years to the day, the US-based short-seller had brought a massive crash in Adani group’s stocks after it published a 110-page report alleging several corporate malfeasances by the Ahmedabad-based business house, including stock price manipulation, cooking of books etc.
Adani group had denied all the allegations and had threatened to sue Hindenburg Research in the US.
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In Thursday’s flat session in the overall market, the Adani group’s combined market capitalisation jumped by about Rs 28,000 crore to Rs 12.9 lakh crore.
In addition to the reports of Hindenburg’s closure, developments related to the temporary ceasefire in the Israel-Hamas war, also added to the positive sentiment surrounding the group’s stocks, sources said. Adani group operates one of the major ports in Israel and a ceasefire is expected to lower uncertainties related to its port operations business in Israel.
In Thursday’s session, among the group’s stocks, NDTV closed nearly 10% higher while Ambuja Cements was up 4%, Sanghi Industries 3.5% and group flagship Adani Enterprises closed 1.7% up.
Sanghi Industries came under Adani’s fold after Hindenburg’s report on the group was released.
Only Adani Wilmar closed lower, down 1.2% on the day. The stock’s price has been under pressure since Dec 30, the day the Adani group announced that it would exit the FMCG major.
At the close of Thursday’s session, at Rs 12.9 lakh crore, the combined market value of Adani group’s companies was still Rs 7 lakh crore from its all-time peak of Rs 19.2 lakh crore on Jan 24, 2023, the day Hindenburg had published its report on the group.
Following the publication of the report, by Feb 27, its aggregate market value was at Rs 6.8 lakh crore, a loss of Rs 11.6 lakh crore or $140 billion at the then exchange rate.
