Following claims by a US research firm, Adani Group stock prices have continued to decline.

 

Following claims by a US research firm, Adani Group stock prices have continued to decline. Following allegations made by a US research firm, Adani Group stocks continue to decline: on the BSE, shares of Adani Total Gas fell 19.65 percent, Adani Transmission fell 19 percent, Adani Green Energy fell 15.50 percent, and Adani Enterprises sunk 6.19 percent.

After the US-based financial research company Hindenburg Research issued unfavorable accusations, the Adani group equities were still under pressure on Friday, dropping up to 20% in early trading.

Adani Total Gas shares fell 19.65%%, Adani Transmission shares fell 19%, Adani Green Energy shares fell 15.50%, and Adani Enterprises shares crashed 6.19% on the BSE.

Adani Wilmar plummeted 5%, Adani Power sank 4.99 %, while Adani Ports and Special Economic Zone also had declines.

Due to intense selling in the financials, banking, energy, and IT industries, the 30-share BSE benchmark fell 1,106 points, or 1.84 percent, to trade at 59,098.37 in the wider market.

The BSE Auto index defied the trend and was the only sectoral index to trade in the green throughout the morning session, led by Tata Motors and Bajaj Auto.

Tata Motors led all Sensex gainers with a 5.14 percent gain as the automaker returned to profitability in the December quarter for the first time in two years.

Bajaj Auto increased by 6% while the BSE Auto index just slightly increased to 29,619.19.

For its "reckless" attempt to thwart a mega share sale at the conglomerate's flagship firm, the Adani Group said on Thursday that it is looking into legal options to take "punitive action" against Hindenburg Research. In response, the US activist investor said that it stands by its report that alleged "brazen" market manipulation and accounting fraud by the group.

"The Hindenburg Research study, which was purposefully deceptive and poorly researched, was released on January 24, 2023, and it had a negative impact on the Adani Group, our shareholders, and investors. The report's impact on the volatility of the Indian stock market is deeply concerning and has caused Indian residents unwarranted suffering "Jatin Jalundhwala, the main executive of the Adani Group, made a statement.

As Hindenburg Research, by their own admission, is positioned to gain from a decline in Adani shares, he said that the research and its unsupported contents were intended to have a negative impact on the share values of Adani Group firms.

He stated, "We are highly upset by this deliberate and careless attempt by a foreign company to mislead the investment community and the general public, harm the goodwill and image of the Adani Group and its executives, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises.

We are assessing the applicable sections of US and Indian law for corrective and punitive action against Hindenburg Research. A US-based investment research company called Hindenburg that specialises in activist short-selling said on Wednesday that its two-year study had shown Adani Group had "engaged in a blatant stock manipulation and accounting fraud scheme over the course of decades."