Adani Group stocks surge up to 5 pc after US legal proceedings close
New Delhi, May 19
Shares of Adani Group companies surged up to 5 per cent in early trade on Tuesday, with listed entities trading in the green amid improved investor sentiment following recent developments related to a US legal case involving group chairman Gautam Adani and his nephew Sagar Adani.
Adani Green Energy emerged as one of the top gainers in the group, rising 5.38 per cent to Rs 1,442 in early trade on the BSE.
Meanwhile, Adani Enterprises jumped as much as 3 per cent to touch an intraday high of Rs 2,774 per share on the exchange.
In addition, Adani Energy Solutions traded at Rs 1,361, up 2.46 per cent from the previous close.
Among other group firms, Adani Total Gas shares surged 4.23 per cent to Rs 635.8, while Adani Power gained 2.48 per cent to trade at Rs 224.70.
The group's cement arms' shares -- ACC and Ambuja Cements -- were trading over 1 per cent higher at Rs 1,382 and Rs 434.05, respectively.
Similarly, Adani Ports and Special Economic Zone shares rose around 1 per cent to Rs 1,805.
The rally in Adani Group stocks came after the US Department of Justice permanently dropped all criminal charges against Gautam Adani and his nephew, Sagar Adani, in an alleged securities and wire fraud case.
In a filing before the US District Court for the Eastern District of New York, the Department of Justice requested dismissal of the indictment.
"The Department of Justice has reviewed this case and has decided, in its prosecutorial discretion, not to devote further resources to these criminal charges against individual defendants," the Justice Department said.
Notably, domestic equity benchmarks Sensex and Nifty traded higher, with an increase of up to 0.5 per cent in the morning trade.
— IANS
Reader Comments
As an investor, this is a sigh of relief. But let's not forget - due diligence is still important. Adani Group has strong infrastructure presence but we must watch for debt levels and governance. Happy for the market though! 🎉
This shows how powerful Indian corporate houses can be when they maintain transparency. The US legal system cleared them - that speaks volumes. Hope this encourages more foreign investment into India. Smart move by Justice Department! 💼🇮🇳
Waah! Finally some positive news for our markets. But my cautious side says - this rally might be overdone. Adani stocks are already expensive. Better to wait for consolidation before entering. Jugaad mat karo, careful investing karo! 🤔📊
Interesting to see this from an international perspective. As someone following Indian markets from the US, this legal resolution is significant. Adani Group's infrastructure portfolio is impressive - ports, energy, cement - all vital sectors. Let's see if this momentum sustains. 🌍📈
Honestly, this rally feels more like a relief rally than genuine growth. The legal cloud cleared but I'm still concerned about Adani's high leverage. Good for existing shareholders but new investors be careful - a 5% surge in a day is not normal. Always DYOR! 🙏⚖️
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