Adani Stocks Soar 15% After Clarification on Bribery Allegations

Adani Group shares continued their winning streak, jumping up to 15% for the second day in a row after Adani Green issued a clarification yesterday refuting bribery charges against Gautam Adani and other top officials.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Leading the charge was Adani Total Gas, which soared as much as 15% during Thursday's morning trade. Adani Green Energy and Adani Energy Solutions weren’t far behind, with their Adani share price climbing nearly 10% each. Adani Power also rallied, posting gains of up to 9%.

Other Adani Group companies like Adani Enterprises, Adani Ports, and Adani Wilmar rose by as much as 5%. Meanwhile, Ambuja Cements, ACC, and NDTV saw more modest gains of up to 2%.

This bounce-back came after Adani Green Energy Ltd addressed allegations of bribery. The company clarified that neither Gautam Adani nor other officials like Sagar Adani and Vneet Jain had been charged under the US Foreign Corrupt Practices Act (FCPA) by the United States Department of Justice (DOJ) or the US Securities and Exchange Commission (SEC). However, the directors are named in charges related to securities fraud, wire fraud conspiracy, and securities fraud conspiracy, according to the company’s statement.

Wednesday saw a surge of up to 16% across Adani Group stocks, and Thursday’s gains built on that momentum.

In addition to the clarification, individual company developments are fueling investor optimism. For instance, Adani Enterprises recently completed its acquisition of a 74% stake in Cococart Ventures Private Limited (CVPL). This deal makes CVPL a joint venture between Adani Enterprises and its wholly-owned subsidiary, Adani Airport Holdings Limited (AAHL).

The overall market capitalization of 10 listed Adani companies jumped by a staggering ₹1.22 lakh crore on November 27, rebounding to ₹12.61 lakh crore from ₹11.39 lakh crore the day before.

The top gainer was Adani Total Gas, which surged nearly 20%. Other major contributors included:

• Adani Power (+19.66%)
• Adani Enterprises (+11.56%)
• Adani Energy Solutions (+10%)
• Adani Green Energy (+10%)

Other companies like NDTV, Adani Wilmar, Adani Ports, Ambuja Cements, and ACC saw gains between 4% and 10%.

Not everything is sunshine and roses for Adani Group stocks. On Tuesday, global rating agency Moody’s downgraded the outlook for seven Adani companies—including Adani Green Energy, Adani Ports, and Adani Transmission—from “stable” to “negative.”

Jashan Arora, Whole-Time Director and Promoter of Master Trust Group, acknowledged that the Moody’s downgrade could spark investor concerns, especially given the regulatory scrutiny Adani stocks have faced.

“Adani stocks have been highly volatile lately. For short-term investors, it’s crucial to assess your risk tolerance before making any decisions. If the downgrade significantly impacts your risk-reward balance, it might be wise to reduce exposure or cut losses. That said, the group’s long-term prospects remain promising, so this dip could also be a buying opportunity—if it aligns with your investment strategy,” Arora explained.

In contrast, GQG Partners, a major foreign investor, remains optimistic. Rajiv Jain, the firm’s co-founder, reaffirmed their confidence in Adani Group’s fundamentals, stating, “Our investment thesis hasn’t changed.” As of November 19, GQG had $9.7 billion invested in Adani companies, accounting for about 6.1% of their $158.6 billion asset base.

Adani Group stocks are rebounding strongly despite the Moody’s downgrade and ongoing legal scrutiny. Clarifications on bribery allegations and positive company developments have helped boost investor confidence, but the road ahead remains uncertain. Whether you're looking to buy the dip or hold steady, make sure your decisions match your financial goals and risk tolerance.