Adani Group Records Single-Day Surge in Combined Market Capitalisation on Tuesday
The Wire Staff
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New Delhi: The Adani group recorded its biggest single-day jump in combined market capitalisation, jumping $12.5 billion on Tuesday, November 28, the Financial Express reported.
This indicates the total increase in the market value of all Adani group companies' shares on Tuesday.
"The conglomerate's m-cap stood at $135.7 billion as of Tuesday. It had jumped by as much as $15.8 billion to $139 billion in intra-day trade. In fact, this was the conglomerate’s biggest single-day gain in in 19 months, with the previous instance being $15.82 billion on April 11, 2022," the newspaper reported.
This rally was prompted by the Supreme Court's observation on Friday (November 24) that the Hindenburg report could not be considered credible until authorities look into it.
"We don’t have to treat what is set out in the Hindenberg report as ipso facto a true state of affairs. That is why we directed SEBI to investigate. Because for us to then accept something which is in a report of an entity, which is not before us, and whose veracity we have no means of testing, would really be unfair. So therefore, we asked SEBI ‘you go and exercise your powers and test what has not come to light, you treat these as revelations or disclosure of allegations and you now exercise your jurisdiction as an adjudicating body’,” Chief Justice of India D.Y. Chandrachud said.
Following the US short-seller's report, Adani group stocks plummeted from $235.2 billion on January 24, 2023 (the day of the report) to a low of $82.3 billion on February 27. While it has recovered since its February low, it remains half of the $270 billion seen on November 15, 2022.
The court’s decision has come as a shot in the arm. We could see a rally for a few days thanks to the momentum and the likelihood of short-term traders buying into the stocks. But institutional investors are unlikely to buy in a hurry based on this development,” market analyst Ambareesh Baliga told the Financial Express.
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