Adani Defends Against Charges of Fraud and Manipulation
Monday’s trading in Adani Group shares was choppy, with investors reacting differently to the news of upcoming court proceedings, stringent regulations scrutiny, and index rebalancing. Adani Enterprises, the group’s main company, saw the highest selling, falling 5.94% to 1,619.55 a share at the BSE market close. Adani Transmission, Adani Green Energy, and Adani Total Gas all fell below their respective 5% support levels. Being included in the NSE Next 50 index, Adani Wilmar’s stock price remained highly volatile, whereas Adani Power’s saw a significant increase and ultimately closed at 5% over its opening price.
With a market cap of 8,27,303.99 crores on February 20, Adani saw a fall of almost 25,033 crores compared to the previous session. According to stock news, the markets have revised their indexes, including the NSE, FTSE Russel, and MSCI. From March 31, 2023, two Adani stocks will be included in NSE’s Next 50 and 500 Index. It has been reported that three Adani Group firms will be excluded from the Indian MSCI index in May as part of the rebalancing effort caused by a significant drop in stock prices. Footsie has stated that it would move forward with the planned index review adjustments for Adani and related stocks.
Adani’s empire is defending itself against Hindenburg’s fraud charges, tax violations, and stock manipulation. Since January 24, when the short sellers reported their findings, a massive selloff of Adani shares has wiped out a billion dollars in wealth. The lawsuit between Adani and Hindenburg is currently being considered at India’s highest court, and the court is aiming to establish a committee to evaluate the current state of market regulation and propose changes that could be made to better safeguard investors in light of the case.
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