Stock Market Today: Adani Group shares gained up to 15% for the second day in a row on Thursday, November 28 after Adani Green Energy issued a clarification yesterday, refuting bribery charges against Gautam Adani and other company officials.
Adani Total Gas share price led the gains, skyrocketing up to 15% during morning trade on Thursday. Adani Green Energy and Adani Energy Solutions share price rose nearly 10% each, and Adani Power share price followed closely with up to 9% gain.
Adani Enterprises, Adani Ports and Special and Special Economic Zone, and Adani Wilmar also gained up to 5%. Among other group companies, Ambuja Cements, ACC and New Delhi Televisions rose up to 2%.
Adani group shares witnessed a sharp rebound after Adani Green Energy issued clarifications yesterday, stating that “Gautam Adani, Sagar Adani and Vineet Jain have not been charged with any violation of the FCPA (United States Foreign Corrupt Practices Act) in the counts set forth in the indictment of the US DOJ (United States Department of Justice) or civil complaint of the US SEC (U.S. Securities and Exchange Commission)"
Further, the company added that these directors have been charged on three counts in the criminal indictment namely (i) alleged securities fraud conspiracy, (ii) alleged wire fraud conspiracy, and (iii) alleged securities fraud.
Adani Group shares had gained up to 16% on Wednesday.
Apart from this, International Holding Co's (IHC) outlook on the group also boosted the sentiment. IHC's outlook on investments in India's Adani Group remains unchanged, the Abu Dhabi conglomerate, according to a Reuters report.
"Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors. As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged," it said.
Following the action by US authorities, Fitch Ratings placed Long-Term Foreign-Currency Issuer Default Rating and US dollar senior unsecured bonds of Adani Green Energy on Rating Watch Negative but reaffirmed the rating at "BBB-".
ICRA Limited has reaffirmed the credit rating of long-term fund-based/non-fund-based limits and non-convertible debentures of the company as [ICRA] AAA; Stable, and the commercial paper of the company as [ICRA] A1+.
India Ratings & Research has reaffirmed the credit rating of non-convertible debentures and bank loans (long term) of the company as IND AAA/Stable, and the commercial paper and bank loans (short term) of the company as IND A1.
In its release, Adani Ports also stated that Moody’s Ratings has revised its outlook to negative, though it reaffirmed its investment grade rating of ‘Baa3’.
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