Adani-Hindenburg SC verdict sees pack rally with Adani Energy Solutions in the lead

• The Supreme Court said that facts of the case do not warrant transfer of probe to Special Investigation Team (SIT) or any other agency.
• It also directed SEBI to complete the probe within three months in the remaining two cases.
• All the Adani group stocks gained in morning trade, even as the broader market was in the red.

Adani group stocks zoomed in early trade, beating the blues in the broader market. The Supreme Court verdict expected in the case was the trigger behind the boost.

In its verdict in the Adani-Hindenburg row, the Apex Court said on Wednesday, that the facts of the case do not warrant transfer of probe to Special Investigation Team (SIT) or any other agency. It also directed markets regulator SEBI to complete the probe within three months in the remaining two cases.

A bench of Chief Justice DY Chandrachud and comprising Justices JB Pardiwala and Manoj Misra, had reserved its verdict in the case in November 2023.

Adani Energy moves fastest

Among the ten listed entities, Adani Energy Solutions moved the fastest in morning trade, gaining as much as 9% as of 11:30 am. The stock was also the top gainer on the Bombay Stock Exchange.

“The Supreme Court judgement on the Adani- Hindenburg issue expected this morning will have a sentimental impact on the Adani stocks in particular and the overall market in general,” said Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services.

All the other group stocks were in the green, with a good showing by Adani Total Gas and NDTV.

The benchmark indices however have been taking a beating this new year, with heavy profit booking. In the morning trade, benchmark indices fell by 0.4%, with BSE Sensex losing over 300 points and Nifty shedding 92 points.

Source: BSE

Multiple cases were filed in the Apex Court last year after the US based research firm's Hindenburg Research released a report alleging Gautam Adani led Adani Group of stock manipulation, accounting fraud and more. All the public interest litigations (PILs) were combined into one case and were heard by the SC bench.

The court had constituted a committee of six members to investigate and submit a report on the matter. It also asked the markets regulator SEBI to probe the matter.

The Hindenburg report also alleged that the Adani group failed to disclose transactions with related parties and other relevant information concerning related parties in contravention of the regulations framed by the SEBI, and violated other provisions of securities laws, causing the group considerable financial damage.