Adani Group Adds $20 Billion As Market Rally Extends Post SEBI Vindication
The rally gained momentum on Tuesday after Bloomberg News reported that SBI Mutual Fund and Citadel Securities picked up stakes in Adani Power.
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Adani Group stocks are once again at the centre of India's market action, with shares across the conglomerate adding nearly $20 billion in market value in just two sessions, Bloomberg reported. The surge follows the Securities and Exchange Board of India dismissing some of Hindenburg Research's allegations against the group and its billionaire founder Gautam Adani.
The rally gained momentum on Tuesday after Bloomberg News reported that SBI Mutual Fund and Citadel Securities picked up stakes in Adani Power, even as long-time backer GQG Partners trimmed its exposure. The fresh buying by marquee investors has lifted sentiment, with analysts suggesting that Adani firms could narrow the $60 billion market cap gap still hanging over them since the short-seller report in early 2023.
Gautam Adani's wealth has jumped by $13 billion, fueled by this rally. The 63-year-old tycoon's net worth has climbed to $95.7 billion, marking a 21.6% increase so far this year, according to the Bloomberg Billionaires Index.
The rally extended into the derivatives market, with bullish bets on Adani Green Energy Ltd. climbing to record levels, while flagship Adani Enterprises Ltd. saw its most optimistic positioning in nearly two years.
The broader equity market, however, presented a more mixed picture. Indian software majors slid sharply, shedding $10 billion in market value after US President Donald Trump unveiled steep new fees for fresh H-1B visa applications. While some analysts, including InCred, flagged fresh uncertainty for the IT sector, others such as Nomura suggested the correction offers a chance to accumulate, arguing the visa changes may have little impact over the next year.
Meanwhile, India's shadow banks are navigating diverging pressures. Rising government bond yields have widened funding spreads, hitting AA-rated lenders more acutely. Still, IIFL analysts expect margins to benefit from improved liquidity after a cut in the cash reserve ratio.
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