Adani Group stocks have been on an absolute tear, with some of the stocks reaching as much as 20% gain.
The main reason for this massive surge is a huge sigh of relief for the Adani Group. The Securities and Exchange Board of India (SEBI), the market watchdog, gave them a clean chit in the Hindenburg case. You might remember the Hindenburg report from last year, which accused the Adani Group of stock manipulation and accounting fraud, causing a huge crash in their stock prices. After a long investigation, SEBI has said that the allegations couldn’t be established, and this news has brought back a flood of investor confidence.
Almost all Adani stocks have been in the green. On a single Friday, the group’s companies added nearly ₹69,000 crore to their market capitalization! As of writing this article, here’s how the gains look like:
- Adani Power led the pack, hitting the upper circuit at 20%.
- Adani Total Gas Ltd surges nearly 18%, well enroute to hit the upper circuit.
- Adani Green surges 13%.
- The flagship company, Adani Enterprises nearly at 5%.
Even other companies in the group, like Adani Ports, ACC, and Ambuja Cements, saw healthy gains.
Can This Rally Continue? That’s the million-dollar question. Market experts are feeling pretty optimistic in the short term. With the regulatory uncertainty out of the way, many believe the stocks could see a further “re-rating.” Big names like Morgan Stanley and Jefferies have given “buy” or “overweight” ratings to some of the Adani stocks, which is a big thumbs-up.
However, it’s not all smooth sailing. While the clean chit from SEBI is a huge positive, the long-term growth of Adani stocks will depend on how well they execute their big projects in sectors like green energy, airports, and infrastructure. So, while the current trend is exciting, it’s always a good idea to keep an eye on the bigger picture!
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