Adani stocks rally up to 9% after SC committee finds no regulatory failure

Adani Group stocks rallied up to 9% in Monday's session, extending their lead to the second straight session after the Supreme Court-appointed expert committee reported that it cannot conclude any regulatory failure around the Adani Group- Hindenburg case. Sebi has "drawn a blank" in its probe into alleged violations in money flows from offshore entities into the conglomerate.

Adani Wilmar was the top gainer in the pack as the stock shot up over 9%. Shares of Adani Enterprises, a Nifty50 company, were trading at Rs 2,053.85 on the NSE at 9:45 am, rising Rs 97.80 or 5% from Friday’s closing price.

Adani Ports and Special Economic Zone was trading at Rs 709.70, gaining Rs 21.60 or 3.14% in the early trade. Adani Power was up by Rs 11.80 or 5% and trading at Rs 247.90. Adani Green Energy was trading at Rs 941.75, up Rs 44.80 or 4.99%.

Adani Transmission shares rose Rs 39.35 or 5% on the NSE and were trading at 826.70. Adani Total Gas was at Rs 722.50, trading 34.40 or 5% higher. Adani Wilmar was trading at Rs 441, up by Rs 37.05 or 9.17%.

Ambuja Cements was at Rs 406.90, up 0.93%, ACC at Rs 1,747, up 1% and NDTV at Rs 186.95, up 5%.

The six-member panel, however, said that there was evidence of a build-up in short positions on Adani Group stocks ahead of the report of US-based short seller Hindenburg Research, and profiting from squaring off positions after prices crashed post-publication of the damning allegations.

"At this stage, taking into account the explanations provided by Sebi, supported by empirical data, prima facie, it would not be possible for the committee to conclude that there has been a regulatory failure around the allegation of price manipulation," the panel said in the report submitted to the Supreme Court.

It further said that there is a need for an effective enforcement policy that is "coherent and consistent" with the legislative position adopted by Sebi.

According to the committee, it also cannot say that there has been a regulatory failure on Sebi's part on minimum public shareholding rules or related party transactions.

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