Investors are closely monitoring Adani group stocks as they display a positive trend on Tuesday, awaiting the outcome of the Adani-Hindenburg issue hearing scheduled later in the day in the Supreme Court.
Rally in Adani Enterprises and Green Streak in Adani Stocks
Amid this anticipation, Adani Enterprises saw a significant rally of up to 2%, contributing to a favorable environment for most Adani stocks. As the trading session unfolded, nine out of the ten Adani stocks recorded gains. Notable among them were Adani Power, Ambuja Cements, and Adani Ports, each trading over 1% higher.
SEBI’s Disclosure and Investigation Progress
The recent development follows the disclosure by the Securities and Exchange Board of India (SEBI) last Friday. The regulatory body informed the Supreme Court that its investigation into potential securities law violations by Adani Group companies has been completed.
In a status report submitted to the court, SEBI detailed the comprehensive steps undertaken during the investigation, although specific findings were not disclosed. Among the 24 matters under scrutiny, findings in 22 have reached a final stage. SEBI affirmed its commitment to take suitable measures based on investigation outcomes and in compliance with legal provisions.
Supreme Court’s Directive and Hindenburg Research Report
The Supreme Court had earlier directed SEBI to furnish a status report on its inquiry into allegations levied against the Adani Group by Hindenburg Research, a short-selling entity. The January report by Hindenburg Research accused the group of fraudulent activities and manipulation, allegations firmly refuted by Adani.
Enforcement Directorate’s Findings on Short Selling
Simultaneously, The Indian Express has revealed that the Enforcement Directorate has identified around twelve entities, including foreign portfolio investors and foreign institutional investors operating from tax havens, as the primary beneficiaries of short selling Adani Group company shares.
The report highlighted that certain short sellers assumed positions merely 2-3 days prior to the publication of the Hindenburg Research report on January 24. Others engaged in short selling for the first time, indicating their involvement in this market activity.
In summary, Adani Group stocks have witnessed positive price movements in the run-up to the Supreme Court hearing regarding the Adani-Hindenburg issue. As the legal proceedings unfold, market participants remain watchful for further developments that could impact the Adani Group’s standing in the financial landscape.
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