Investors shrug off toolkit against Adani Group, key portfolio firms' stock continue to rise
The key portfolio companies of the Adani Group on Friday continued their sharp rally, with the flagship Adani Enterprises Ltd (AEL) regaining losses of more than $30 billion that accrued after the short-seller firm Hindenburg's report
image for illustrative purpose
Mumbai, May 24: The key portfolio companies of the Adani Group on Friday continued their sharp rally, with the flagship Adani Enterprises Ltd (AEL) regaining losses of more than $30 billion that accrued after the short-seller firm Hindenburg's report.
The Adani Enterprises stock has registered a rise of 12 per cent in the last five trading sessions. The iconic global financial institution Cantor Fitzgerald has given it a target price of Rs 4,338.
Apart from this, the stock has given returns of about 53 per cent to investors in the last six months. The stock has also tripled from its February low of 2023.
The AEL stock was almost flat at Rs 3,381 apiece on the BSE.
While Adani Green Energy shares went up 1.8 per cent, Adani Total Gas increased by 2.5 per cent and Adani Energy Solutions rose by 0.50 per cent.
The investors have rejected the report by The Organized Crime and Corruption Reporting Project (OCCRP), along with their collaborators, the Financial Times (FT) targeting the homegrown business conglomerate, one of the largest in the world, "all in the name of investigative journalism".
According to experts, the Financial Times editorial board and the funders of the OCCRP, which include George Soros's Open Society Foundations, the Ford Foundation, the Rockefeller Brothers Fund, and the Oak Foundation, got it wrong, "attempting to add rejected masala to a debate that concluded months ago".
"A coordinated effort to create noise around a recycled and rehashed report yielded nothing yet again. Much to their dismay, the opposite happened. The stock market reacted positively to the Adani Group," said experts.
"Investors, including major foreign investors, perhaps grew tired of such hoax calls from Western media and motivated so-called ‘investigative’ groups. In any case, market sentiment, as displayed by investors, is also a barometer of public sentiment," they noted.
The Adani Enterprises shares have made a strong comeback in the market, recouping all losses triggered by the short seller firm Hindenburg report.
The reason for the rise in Adani Enterprises shares is the clean chit given by the Supreme Court to Adani Group regarding the allegations made by Hindenburg. Also, there is a possibility of its share being included in BSE Sensex.
The 10 listed Adani Group firms now have nearly Rs 17.23 lakh crore as their combined market valuation.
Clearly, investors rejected the Financial Times-OCCRP claims of wrongdoing in the supply of coal to the Tamil Nadu government-owned power company.
The iconic global financial institution Cantor Fitzgerald stated that the FT report against the Adani Group is "just for noise."
