Adani’s Market Comeback: What’s Driving the Rally for Adani Group Stocks?

Adani Green Energy tops the charts with a 20.35% rally; NDTV, Ambuja, and ACC follow with double-digit gains

Adani Group stocks staged a remarkable comeback over the past week, with multiple stocks delivering double-digit gains. Leading the charge was Adani Green Energy, which surged 20.35 per cent to Rs 1,071.15, followed closely by Adani Power with a 19.98 per cent jump. Other prominent performers included NDTV (+14.13 per cent), Ambuja Cements (+10.77 per cent), and ACC (+10.77 per cent). Adani Ports and Adani Enterprises also recorded notable gains of 7.00 per cent and 8.10 per cent, respectively, reflecting strong investor confidence. Even Adani Total Gas (+7.76 per cent) and Adani Energy (+4.94 per cent) contributed to the broad-based recovery, while Adani Wilmar posted a modest increase of 2.50 per cent.

Adani Group Stocks Rally as Hindenburg Research Disbands

The rally was driven by the announcement that Hindenburg Research, the US-based short-seller whose reports had previously erased billions from the Adani Group’s market value, is officially shutting down.

In a statement on the firm’s website, Nate Anderson, founder of Hindenburg Research, said, “I have made the decision to disband Hindenburg Research. The plan has been to wind up after we finished the pipeline of ideas we were working on.” Anderson emphasized that the closure was for personal reasons and not due to any external threats or health concerns.

The announcement marked a pivotal moment for the Adani Group, which had faced a sharp decline in stock valuations following Hindenburg’s January 2023 report. The report alleged corporate irregularities and wiped out over $130 billion in market capitalization. Investigations by SEBI and a Supreme Court-appointed panel into these allegations have so far been inconclusive.

Hindenburg, renowned for exposing corporate fraud, had previously unveiled misconduct involving Nikola founder Trevor Milton and governance issues at Icahn Enterprises, causing significant market declines. Their report on Adani accused the conglomerate of “stock manipulation” worth Rs 18 trillion ($218 billion) and decades-long “accounting fraud schemes.”

Stock Performance Highlights 

(Source: TradingView.com)

Focus on Adani Green Energy

Adani Green Energy Ltd. emerged as a top gainer, soaring 20.35 per cent over the week. This rally was attributed to speculation regarding potential relief for chairman Gautam Adani in a US bribery case, coupled with the positive sentiment generated by Hindenburg’s shutdown.

The company’s robust Q3 operational update also fueled investor optimism. Its operational capacity surged 37 per cent YoY to 11,609 MW, supported by greenfield additions of 2,693 MW solar and 438 MW wind power projects. Energy sales grew 23 per cent YoY to 20,108 million units during the nine months of FY25, showcasing its strong performance.

Developments in Adani Energy Solutions 

Adani Energy Solutions (AESL) also contributed to the group’s resurgence, securing two significant transmission projects in Rajasthan’s renewable energy park. These additions brought its order book to an impressive Rs 54,700 crore, a massive jump from Rs 17,000 crore at the start of FY25.

The Bhadla-Fatehpur HVDC transmission project, worth Rs 25,000 crore, is the company’s largest order to date, highlighting its growing role in India’s renewable energy infrastructure.

While the recent performance indicates renewed investor interest, market participants are advised to exercise caution before taking fresh positions in Adani Group stocks. The rally, although impressive, is driven by speculation and high market volatility, particularly in these high-beta stocks.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.