By Samannay Biswas
Copyright timesnownews
The Adani Group witnessed a sharp rally in its listed companies’ shares on Thursday after the Securities and Exchange Board of India (SEBI) cleared the conglomerate and its top executives of wrongdoing in the wake of allegations made by U.S.-based short seller Hindenburg Research. The ruling, which found no evidence of insider trading, market manipulation, or fraudulent practices, has been welcomed as a significant boost to investor confidence. SEBI’s Verdict Brings Relief In its order, SEBI concluded that all the impugned transactions by Adani Enterprises, Adani Ports, and other group entities were in compliance with prevailing laws. The regulator emphasized that the transactions “cannot be claimed as being violative of regulations.” The matter will now be submitted to the Supreme Court since the probe was being monitored under its directions. However, experts say the findings close the chapter on allegations that had been hanging over the group since 2023. Market Impact: Stocks Jump Up to 13% Following the news, Adani Group stocks surged across the board: Adani Total Gas: Gained as much as 13%, its steepest intraday rally since May.Adani Power: Rose up to 8%, with more than 1.4 crore shares traded within the first 30 minutes of trade.Adani Enterprises: Climbed nearly 4%, extending its recovery momentum.Adani Ports: Cooled off from day highs but still closed in positive territory.Adani Green Energy & Adani Energy Solutions: Advanced between 5–7% in early session. The rally was accompanied by strong trading volumes, signaling renewed buying interest from institutional and retail investors alike. Losses and Recovery: From $150 Billion Rout to Rebound At the peak of the Hindenburg crisis in early 2023, the Adani Group had lost more than $150 billion (₹12.5 lakh crore) in market value, wiping out years of gains. Since then, the group has managed to claw back a significant portion of those losses. With Thursday’s surge, analysts estimate the conglomerate has recovered nearly $60–70 billion in market capitalization. Still, most stocks remain 20–30% below their all-time highs, reflecting lingering caution among investors. Expert Reactions Speaking to CNBC-TV18, senior advocate HP Ranina explained: “SEBI has gone into all the facts, examined the documents, heard both sides, and reached a conclusion that the allegations are without any substance. This is a factual finding, and since no question of law is involved, the matter should now come to an end.” Sanjay Asher of Crawford Bayley & Co. added, “This is good news not only for the Adani Group but also for Indian corporates and markets. It strengthens confidence in India’s regulatory system and corporate governance. The overhang is gone, and the way forward is clear.” What It Means for Adani and Investors The clean chit marks a turning point for Gautam Adani’s empire. It could: Rebuild global investor trust, especially with foreign institutions that had reduced exposure.Improve access to capital markets, including bond and equity financing.Stabilize valuations across group companies that were under pressure. However, analysts also caution that the group’s stocks remain highly sensitive to global market conditions, commodity cycles, and scrutiny of debt levels. The SEBI clean chit has provided the Adani Group with much-needed regulatory relief and sparked a strong rally in its stocks. While the conglomerate has not yet fully erased the $150 billion rout triggered by Hindenburg’s allegations, Thursday’s gains suggest that the group is firmly on the path to recovery.
