Adani Group stocks experienced significant gains after reports revealed that the US government, during its due diligence investigation for a container terminal project in Sri Lanka, concluded that short-seller Hindenburg Research's allegations of corporate fraud against Gautam Adani were not relevant.
The International Development Finance Corp. (DFC), which extended up to $553 million for the Sri Lankan project, reportedly found the accusations in Hindenburg's report not applicable to Adani Ports & Special Economic Zone Ltd., the subsidiary leading the project.
The news of the US government's satisfaction with Adani Group's credibility led to a surge in Adani Group stocks. Adani Green rose by 18%, Adani Energy by 12%, Adani Total Gas by 11%, Adani Enterprises by 11%, Adani Ports by 9%, Adani Power by 7%, Ambuja Cement by 6%, and Adani Wilmar by 6%.
The positive sentiment surrounding Adani Group stocks contributed to a bullish market, with the BSE Sensex reaching a new high of 69,180 points. While the market may not witness a repeat of the significant rally seen on the previous Monday, institutional confidence in the Indian market remains strong.
Institutional buying, particularly by foreign portfolio investors (FPIs), has been consistent in recent days, reflecting confidence in frontline banking stocks and contributing to a positive market outlook. The market has the potential to rise further in the coming weeks, with a potential gain of up to 5%, according to market analysts.
(With Agency Inputs)
ALSO READ | Gautam Adani Reclaims Spot Among World's Top 20 Billionaires
ALSO READ | Adani Group Shares Soar Following Supreme Court Proceedings in Adani-Hindenburg Case
