Adani energy company shares continue to fall following US court indictment

A day after the Adani Group faced its worst market hit since the Hindenburg Research allegations in early 2023, shares of six groups, including flagship Adani Enterprises Ltd. (AEL), recorded a moderate recovery on Friday, but its energy positions enterprises went even deeper into the red. Adani Green Energy, which finds itself at the center of a new wave of allegations of bribery and securities fraud after… A US court has indicted the band’s promoter, Gautam Adani. and several associated companies fell 8.2% on the Bombay Stock Exchange (BSE) compared with a 19% fall the day before. Shares of the group’s other energy-related companies Adani Energy Solutions and Adani Power also fell 6.9% and 3.23%, respectively. The decline coincided with the broader Nifty 50 index’s sharpest one-day gain in more than five months as it jumped 2.4 per cent to close at 23,907 points after falling to a fresh five-month low on Thursday. The 30-share BSE Sensex posted a marginally faster gain of 2.54 per cent to close at 79,117, breaking the overall downward trajectory of the exchanges in recent weeks after benchmark indices hit record highs in late September. Shares in the flagship Adani-led conglomerate AEL rose about 2.1% to just over ₹2,229 a share, with gains slower than benchmark indexes after falling more than 23% on Thursday. Shares of Adani Ports and SEZ rose 2.1% while shares of Adani Total Gas closed 1.5% higher on the BSE. ACC and Ambuja Cement shares were the best performers, rising 3.3% and 3.8% respectively. “Nifty recorded its best one-day gain in over five months and cash market volumes rose to ₹1.01 lakh crore. Broad market indices have risen less than the Nifty, although the lead ratio has increased sharply,” said Deepak Jasani, head of retail research, HDFC Securities. Global signals provided some relief as oil prices rose, with Brent crude rising 1.95% to $74.23 a barrel amid geopolitical tensions between Russia and Ukraine.

The dollar index rose to a 13-month high of 107, helped by strong US labor market data, while the rupee strengthened marginally to close at 84.45 per dollar, up from Thursday’s record low of 84.5, Vikram said Kasat, head of the consulting department. in Prabhudas Lillader. Meanwhile, in a fresh setback for the Adani group, S&P Global Ratings changed her view of her three businesses from “stable” to “negative” on Friday, citing risks to access to funding following the US indictment. In an editorial, Hindu noted that it would be an eternal shame if Indian agencies did not conduct an internal investigation into the US Justice Department’s allegations that Mr. Adani and his associates offered bribes to officials in more than one state. “The Center must abandon its reluctance to probe the Adani group… This is not about one tycoon failing due to events beyond the control of his political patrons. It’s about how much the government can be seen as protecting the individual.” In Washington, asserting that the India-US relationship is built on a strong foundation, The White House expressed confidence that he can handle the ongoing crisis surrounding bribery allegations against Mr Adani. At her daily news conference, White House press secretary Karine Jean-Pierre told reporters on Thursday that the administration was aware of the allegations against Mr. Adani.

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