Adani Group stocks took a sharp hit in early trading on Wednesday, following reports that the US Securities and Exchange Commission (SEC) has sought assistance from Indian authorities in its investigation into Gautam Adani and his nephew, Sagar Adani. The probe, linked to alleged securities fraud and a ₹2,300 crore bribery scheme, triggered panic selling among investors, sending Adani Enterprises down by 4.3% at market opening.
The SEC informed a US district court on Tuesday that it was working with India’s Ministry of Law and Justice to facilitate legal proceedings against the Adanis. This revelation fueled fresh concerns among investors, leading to a broad-based decline across all Adani Group stocks.
Key Highlights:
Adani Group Stocks Take a Hit:
The market reaction was swift, with several Adani Group stocks witnessing significant losses:
- Adani Enterprises – Down 4.3% to ₹2,123.95, reducing its market value to ₹2.5 lakh crore.
- Adani Ports & SEZ – Dropped 2.6% to ₹1,055.25.
- Adani Green Energy – Fell 4.3% to ₹860, as it was reportedly the main beneficiary of the bribery scheme.
- Adani Power – Declined 2.5% to ₹472.50.
- Adani Total Gas – Slipped 2.5% to ₹564.85.
- Adani Wilmar – Dropped 2.5% to ₹250.
The sell-off wiped out billions in market value, highlighting investor nervousness about the ongoing regulatory scrutiny.
What Is the SEC Investigating?
The SEC’s investigation focuses on allegations that Adani Group misled American investors about its anti-corruption policies and was involved in bribing Indian officials to secure favorable electricity contracts for Adani Green Energy.
- The bribery scheme, estimated at ₹2,300 crore, allegedly influenced regulatory decisions to benefit Adani Green Energy.
- The Adani Group has denied all allegations, calling them “baseless” and asserting its commitment to legal action to protect its reputation.
Investor Reactions & Market Recovery:
Despite the initial steep fall, some Adani stocks recovered from session lows as investors evaluated the potential impact of the SEC’s legal action. However, uncertainty remains high as:
- The Indian government has yet to issue a response regarding cooperation with the SEC.
- The Adani Group has not released an official statement addressing the latest SEC request.
- The broader market sentiment remains cautious, with analysts warning of potential volatility in Adani stocks in the coming days.
The SEC’s deepening probe into the Adani Group has once again raised concerns among global investors. While Adani Enterprises and other group stocks faced a sharp decline, some managed partial recoveries as market participants awaited further developments. The lack of an official response from Indian authorities and the Adani Group has left investors on edge, making Adani stocks a key focus in upcoming trading sessions.
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