Adani Group Stocks Rebound Up To 6 Per Cent After US Bribery Allegations Sparked Rs 2.2 Lakh Crore Sell-Off

Adani Group stocks staged a strong recovery on Friday (22 November), reversing early losses to surge by up to 6 per cent in midday trade. The rebound followed a sharp sell-off the previous day, triggered by US bribery allegations against Gautam Adani and other group executives.

By noon, Adani Enterprises rose 3.1 per cent to Rs 2,252, emerging as one of the top gainers and contributors to the NSE Nifty 50. Adani Ports and SEZ gained 1.7 per cent, trading at Rs 1,133, while Adani Green Energy climbed 3.5 per cent to Rs 1,186. 

Other Adani Group companies, including ACC, Ambuja Cement, and Adani Total Gas, also recovered to trade in positive territory. However, Adani Energy Solutions declined 3.5 per cent, trading at Rs 673.

This recovery comes after a tumultuous session on 21 November, where the group’s listed firms collectively lost Rs 2.2 lakh crore in market capitalisation, marking one of the steepest single-day declines in its history.

The recent market turmoil was spurred by allegations from US prosecutors that Gautam Adani and other executives orchestrated a $250 million bribery scheme to secure solar energy contracts in India. The charges also accuse the group of obstructing justice and misleading US authorities.

This isn’t the first time the Adani Group has faced such challenges. In January 2023, the Hindenburg report accused the group of financial misconduct and stock manipulation, leading to a significant decline in stock prices, with some falling as much as 83 per cent.

By May 2024, many stocks, including Adani Power and Adani Ports, had rebounded to pre-report levels, while others like Adani Total Gas, Adani Energy Solutions, and Adani Wilmar continued to feel the pressure.

Friday's rebound reflects the ongoing volatility surrounding Adani Group stocks as investors grapple with the fallout of these allegations and the group’s efforts to restore market confidence.

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