Following the recent Supreme Court ruling, the shares of businesses affiliated with industrialist Gautam Adani experienced a notable surge.
On Wednesday, the Supreme Court declined to intervene in the Securities and Exchange Board of India (SEBI)'s inquiry into the Hindenburg Research report. Subsequently, the stock prices of Adani Group companies witnessed an 11 percent increase.
Initially, this surge reached up to 16 percent, but over time, there was a subsequent decline in the shares of several companies.
Chief Justice of India DY Chandrachud emphasized the limited scope of the Supreme Court's authority to intervene in SEBI's investigations. SEBI had already investigated 20 out of 22 cases, and the court instructed them to conclude the remaining two cases within the next three months.
The Supreme Court asserted that there was no justification for transferring the investigation from SEBI to any other agency or a Special Investigation Team (SIT).
Notably, Adani Port and SEZ, along with Adani Enterprises, saw a 2 to 5 percent increase in their share prices. Simultaneously, Adani Wilmar, Adani Green Energy, Adani Power, Adani Total Gas, and Adani Energy Solutions observed increases ranging from 3 to 11 percent.
The stock prices of other Adani Group entities, such as NDTV, ACC, and Ambuja Cement, also maintained levels above six percent.
In January 2023, Hindenburg Research had raised significant concerns about the Adani Group, which were subsequently refuted by the group.
Following the release of the Hindenburg report, the Adani Group experienced a substantial decline in its stock prices.
'Our humble contribution will continue'
After the Supreme Court's ruling, Gautam Adani expressed gratitude in a tweet. He said the Hon'ble Supreme Court's judgment demonstrates that truth has prevailed. I am thankful to those who stood by us. Our humble contribution to India's growth story will continue, he added.
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