Adani Group shares rise up to 6 percent after US bribery allegations trigger Rs 2.2 lakh crore sell-off

Adani Group shares posted strong gains recovery on Friday (Nov. 22), erasing early losses and rising 6 percent in midday trading. The recovery followed a sharp sell-off the day before, sparked by US bribery charges against Gautam Adani and other group executives.

By noon Adani Enterprises rose Adani Ports and SEZ shares rose 1.7 percent to trade at Rs 1,133, while Adani Green Energy shares rose 3.5 percent to Rs 1,186.

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

The recovery comes after a turbulent session on November 21 when the group’s listed companies collectively lost Rs 2.2 lakh crore in market capitalization, one of the steepest one-day declines in its history.

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

This is not the first time that the Adani Group has faced such problems. In January 2023, the Hindenburg Report accused the group of financial irregularities and stock manipulation, causing share prices to fall significantly, with some falling as much as 83 percent.

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

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