Adani Group shares rebound as much as 6% after US bribery allegations trigger Rs 2.2 lakh Crore sell-off

Adani Group’s shares posted a strong recovery on Friday (November 22), reversing early losses to rise as much as 6% in midday trade. The rebound followed a sharp sell-off the previous day triggered by US bribery charges against Gautam Adani and other group executives.

By noon, Adani Enterprises rose 3.1% to Rs 2,252, becoming one of the top gainers and contributors to the NSE Nifty 50. Adani Ports and SEZ gained 1.7% to trade at Rs 1,133, while Adani Green Energy rose 3 .5% to Rs.1,186.

Other Adani Group companies including ACC, Ambuja Cement and Adani Total Gas recovered to trade in positive territory. However, Adani Energy Solutions fell 3.5% to trade at Rs 673.

This comeback comes after a tumultuous session on November 21, in which the group’s listed firms collectively lost 2.2 million lei in market capitalization, marking one of the steepest single-day declines in its history.

The recent market turmoil was spurred by allegations by US prosecutors that Gautam Adani and other executives orchestrated a $250 million bribery scheme to secure solar contracts in India. The charges also accuse the group of obstructing justice and misleading US authorities.

This is not the first time that the Adani Group has faced such challenges. In January 2023, the Hindenburg report accused the group of financial misconduct and stock manipulation, leading to a significant drop in share prices, with some falling as much as 83%.

By May 2024, many stocksincluding Adani Power and Adani Ports, returned to pre-report levels, while others such as Adani Total Gas, Adani Energy Solutions and Adani Wilmar continued to feel the pressure.

Friday’s rebound reflects the continued volatility surrounding Adani Group shares as investors grapple with the fallout from the allegations and the group’s efforts to restore market confidence.