Adani Group stocks recover, most end in green after steep fall triggered by US bribery charges

Adani Group companies, including cement players ACC, Ambuja, and Adani Total Gas, also recovered from lows to trade in the green.

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Adani Group's large stocks turned positive, and climbed as much as 2 percent on November 22 after the previous day’s massive sell-off triggered by bribery charges in the US against Gautam Adani and other group executives.

Adani Enterprises stock ended up 2 percent at Rs 2,228, after rising to an intraday high of Rs 2,290. During the day, the stock was among the top gainers and top positive contributors to NSE Nifty 50. The benchmark equity index climbed 2.4 percent or 557 points to close above 23,900 points today.

Adani Ports and SEZ shares also rose 2 percent to end the session at Rs 1,137. On the other hand, Adani Green Energy stock extended yesterday's fall to end with sharp losses -- down 8.2 percent at Rs 1,052. During the afternoon session, Adani Green stock had turned green, hitting an intraday high of Rs 1,219.

All three stocks -- Adani Enterprises, Adani Ports and Adani Green -- were among the 5 most active large stocks on NSE today. Another group stock that fell was Adani Energy Solutions, which ended the day with a loss of 6.9 percent at Rs 649.

Other Adani Group companies, including cement players ACC, Ambuja, and Adani Total Gas, recovered from lows to trade in the green, ending up by 1-3 percent each.

The gains come after a tumultuous session on November 21, when Adani Group’s listed firms lost Rs 2.2 lakh crore in market capitalisation, marking one of the steepest single-day declines in the group’s history. Shares of flagship Adani Enterprises had fallen 23 percent, while Adani Green Energy and Adani Energy Solutions plummeted 20 percent each.

Also read | S&P revises outlook on Adani Group firms to negative; flags funding, cash flow risks after bribery charges

The market turmoil followed allegations by US prosecutors that Gautam Adani and other executives orchest0rated a $250 million bribery scheme to secure solar energy contracts in India. The charges, which include accusations of obstructing justice and misleading US authorities, have intensified scrutiny on the group’s governance and financial stability.

Adding to the challenges, S&P Global Ratings revised its outlook on three Adani Group entities—Adani Electricity Mumbai Ltd, Adani Ports and Special Economic Zone Ltd, and Adani Green Energy Ltd Restricted Group 2 (AGEL RG2)—to negative. S&P affirmed the ratings on these entities. But it warned that their cash flows could be materially impacted if the allegations are proven, or if their funding costs rise or funding access weakens.

S&P also said that domestic and international banks and bond market investors might impose group-level exposure limits, potentially affecting Adani Group’s ability to raise funds. The ratings agency added that the group relies on regular access to equity and debt markets for its ambitious growth and refinancing needs.

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