Adani Group stocks surge up to 6% today after last week’s sell-off; what’s fuelling the rally

Mumbai | January 27

Shares of Adani Group companies staged a strong recovery on Tuesday, with several stocks gaining up to 5% in early trade, after a steep sell-off in the previous session triggered by concerns over US regulatory developments.

Adani Enterprises Limited rose nearly 5% to around ₹1,965, while Adani Ports and Special Economic Zone Limited advanced over 4% to ₹1,363, placing both stocks among the top gainers on the Nifty in morning trade.

The rebound follows sharp losses on Friday, January 23, when Adani Group stocks came under heavy pressure after media reports said the US Securities and Exchange Commission (SEC) had sought court approval to serve legal summons to Gautam Adani and group executive Sagar Adani.

Other Adani stocks also recover

Buying interest was seen across the group on Tuesday. Adani Green Energy Limited gained nearly 4%, Adani Energy Solutions Limited rose close to 4%, while Adani Power Limited was up over 2% in early trade.

The recovery comes after a sharp rout in the previous session. On Friday, Adani Enterprises had closed nearly 11% lower, Adani Green Energy had fallen more than 14%, and Adani Energy Solutions had declined about 10%, marking its steepest single-day fall in over a year.

What triggered last week’s sell-off

The selling pressure was driven by reports that the SEC had approached a US court seeking permission to use alternative methods, including email, to serve legal summons after earlier attempts through Indian authorities were unsuccessful.

According to media reports, India’s ministry of law and justice declined to serve the summons on procedural grounds on two occasions. The SEC has contested the objections and said it does not expect service to be completed through existing channels.

Adani Enterprises clarification eases concerns

Separately, Adani Enterprises also informed stock exchanges that it is not a party to the legal proceedings referenced in recent media reports. Responding to queries from the BSE and NSE, the company said there are no allegations against it and that the reported developments do not warrant any disclosure under SEBI’s listing regulations.

The company also reiterated that the matter has no bearing on its disclosure or compliance obligations.

The Adani Group has consistently rejected the allegations made by US authorities, describing them as baseless, and has said it will pursue all available legal remedies.

For more market updates, follow PL Capital.