New Delhi, Dec 5 (IANS): Adani Group stocks were top gainers on Tuesday after Bloomberg reported that the US government concluded that short-seller Hindenburg Research’s allegations of corporate fraud against Indian billionaire Gautam Adani weren’t relevant before extending his conglomerate as much as $553 million for a container terminal in Sri Lanka.
Allegations in a scathing report by US-based Hindenburg Research, which erased around $100 billion from the Adani Group’s market value earlier this year, were front and center as the International Development Finance Corp., or DFC, conducted a due diligence investigation of the conglomerate, an official from the US agency told Bloomberg.
DFC was satisfied that the accusations in the short-seller’s report, which said Adani was pulling off “the largest con in corporate history”, weren’t applicable to Adani Ports & Special Economic Zone Ltd., the subsidiary spearheading the Sri Lankan project, the DFC official said, declining to be named to detail the negotiations, Bloomberg reported.
Adani Green is up 18 per cent, Adani Energy is up 12 per cent, Adani Total Gas is up 11 per cent, Adani Enterprises is up 11 per cent, Adani Ports is up 9 per cent, Adani Power is up 7 per cent, Ambuja Cement is up 6 per cent, Adani Wilmar is up 6 per cent.
BSE Sensex is up 315 points to a fresh high of 69,180 points.
The super Monday, which delivered a 418 point rally in the Nifty, is unlikely to be repeated with the same ferocity in the coming days. But the market construct stays bullish, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The massive institutional buying of above Rs 7,000 crore Monday is a reflection of institutional confidence in the Indian market. It is important to understand that FPIs have reversed their selling strategy and have been consistent buyers during the last seven days. There is accumulation happening in the frontline banking stocks. This, along with short covering and reasonable valuations, will keep this segment strong.
The market has the potential to go up by another 5 per cent in the next many weeks. Beyond that valuations will get stretched inviting correction in the market, he said.