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Shares of billionaire Gautam Adani-led Adani Group companies witnessed strong buying on Monday, with heavyweights Adani Ports, Adani Power, and Adani Total Gas rallying up to 14% intraday, in an otherwise range-bound broader market.
The Gujarat-based companies got a boost today amid a Bloomberg report that representatives of the Adani Group entities met officials from U.S. President Donald Trump’s administration to seek dismissal of criminal charges in a bribery probe.
Driven by the development, the scrips of all 11 listed entities were trading higher with solid gains, while the cumulative market capitalisation of Adani Group companies crossed ₹14 lakh crore. Adani Total Gas topped the gainers chart by rising as much as 14.1% during the session so far, while A dani Ports and Special Economic Zone shares climbed 8.6% in intraday trade. Similarly, Adani Power shares soared 11.3%, while Adani Enterprises, the group's flagship firm, added nearly 9%.
Among others, Adani Energy Solutions , Adani Green Energy , Adani Wilmar , ACC , and Ambuja Cements were trading higher in the range of 3-10%. While, New Delhi Television Ltd (NDTV) and Sanghi Industries shares rose up to 6%.
Meanwhile, the domestic equity benchmarks Sensex and Nifty were trading higher by 0.5%, with Adani Ports leading the gain, followed by Bajaj FinServ , M&M , Eterna l (Zomato), and Power Grid Corporation of India.
What fuelled rally in Adani group stocks?
The listed entities of the power-to-port conglomerate surged today amid hopes of dismissal of criminal charges against chairman Gautam Adani in the overseas bribery probe. The development came after the Bloomberg report that representatives for Gautam Adani met officials from Trump's administration to seek dismissal of criminal charges in the bribery probe.
Earlier in February this year, U.S. President Donald Trump had signed an executive order, directing the Department of Justice to stop enforcing the 1977 Foreign Corrupt Practices Act (FCPA), a law that was used to launch the bribery investigation against the billionaire tycoon along with his nephew Sagar and others. The law prohibits U.S. companies and foreign firms from bribing officials of foreign governments to obtain or retain business.
On November 20, the United States Department of Justice (U.S. DoJ) and the United States Securities and Exchange Commission (U.S. SEC) issued a ‘criminal indictment’ and brought a civil complaint, respectively, against Gautam Adani and his nephew in a $250 million bribery case, which alleged the conglomerate bribed Indian officials in exchange for favourable terms for solar power contracts.
However, the Adani Group refuted bribery allegations, saying the charges against its three directors, including the chairman, related to three counts of "criminal indictment" but not the "alleged FCPA violations".
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)
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