Days after Gautam Adani’s group slipped into controversy due to the allegations of fraud by Hindenburg Research, Adani Group stocks have recovered some of their losses over the last few days.
Adani Enterprises reduces its stake by 14.8%. Most group stocks end the year with gains.
Most Adani Group stocks finished higher on Tuesday, recouping some of the losses sustained over the previous ten days following the release of the Hindenburg Research report.
Adani Enterprises Ltd.’s trading was halted three times during the day as it surged the maximum 20%. The stock gave up some of its gains to end 14.8% higher, reversing the previous two weeks’ slide.
Adani Ports and SEZ Ltd. closed 1.9% higher, and the stock was barred from trading in futures and options. From its recent lows, the stock has recovered nearly 26%. However, it has dropped by more than 50% in the last two weeks.
Adani Enterprises Ltd.’s trading was halted three times during the day as it surged the maximum 20%. The stock gave up some of its gains to end 14.8% higher, reversing the previous two weeks’ slide.
According to Rajesh Palviya, analyst at Axis Securities Ltd., Rs 2,000 will be a critical resistance level, but it is still down 40% from recent highs.
Adani Ports and SEZ Ltd. closed 1.9% higher, and the stock was barred from trading in futures and options. From its recent lows, the stock has recovered nearly 26%. However, it has dropped by more than 50% in the last two weeks.
Hindenburg Research published a report earlier this month accusing the Adani Group of stock manipulation and accounting fraud.
Adani group later published a rebuttal stating Hindenburg Research report as a ‘malicious combination of selective misinformation and stale, baseless and discredited allegations’. It responded to the Hindenburg Research report with a 413-page rebuttal.
Given the party’s wild allegations against the Modi government of favouring a “few rich people,” the Congress party jumped on the bandwagon to attack the Adani Group and, by extension, the Modi government. Senior Congress leader Rahul Gandhi has repeatedly used ‘Adani and Ambani’ jibes to criticise the current administration, despite the fact that Congress-ruled state governments have lavished the businessmen with favours.
Similarly, Congress supporters, self-proclaimed neutral journalists, alleged ‘fact-checkers,’ and leftist trolls have jumped into the fray, using allegations against the Adani Group to train their guns against the central government, hoping that their far-fetched efforts to implicate the Modi regime will reap electoral rewards in the near future.
While most voices on the ‘right’ have only questioned intentions and raised red flags about the larger global left narrative, which appears to undermine India’s rise and the legitimacy of its democratically elected government. Those voices have not given the Adani Group a clean chit, but rather have shed light on the global Left’s agenda.
The right wing may be aware of the nuances of the situation and is thus divided on the issue. In their visceral hatred for Modi, the Congress and the Left ecosystem are attempting to drag the issue into the political realm, desperately hoping to use it to dent the Modi government’s electoral supremacy ahead of a busy election year and the all-important general election.
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