NewDelhi: In a surprising twist, Adani Group shares appreciated sharply on Thursday after Hindenburg Research made a surprise declaration of its shutdown. The news came as a big blow to the Indian stock market, especially to the Adani Group, which saw all its stocks soar.
The Nifty rose by 164 points to open at 23,377, and the Sensex jumped by 595 points to open at 77,319. But the biggest gainers were the Adani group stocks as investors looked to buy on the back of positive news flow about the conglomerate.
Adani Enterprises Ltd., the flagship company of the conglomerate, rose by 7.7 percent to Rs. 2,569.85. The other group firms also went up, with Adani Ports and SEZ increasing by 5.5%, Adani Green Energy by 8.8%, and Adani Power by a whopping 9.2%.
The cause of this sharp bounce can be linked to the recent declaration made by Nathan Anderson, the founder of Hindenburg Research, about stopping the short-selling firm. This is a big moment for Hindenburg Research, coming exactly two years after its devastating report on the Adani Group that wiped out $100 billion from Gautam Adani’s personal wealth and triggered a prolonged period of market turbulence for the conglomerate.
The Adani Group had earlier, in its 24th January 2023 report, accused the group of improper use of offshore tax havens and stock manipulation, something that the group strongly refuted. The shutdown of Hindenburg Research seems to have removed a big overhang that was weighing on Adani stocks and boosted investor confidence again.
In the future trading, market analysts fix their attention on the Adani Group stocks, and many of them think that it may be the beginning of the Adani Group’s revival. The events of the day are a clear illustration of the fact that the dynamics of financial markets are seldom stable and how much damage the short selling firms can cause to organisations.