Adani Gets SEBI Clean Chit; RIA Eyes ₹2,600 on Adani Enterprises

As per the recent news, the Adani group gets a major boost after SEBI gives clearance to many of its key companies. After clearing these allegations, which reduced investors’ confidence since early 2023. Market experts believe this regulatory decision could give relief across Adani stocks, especially Adani Enterprises, Adani Ports, and Adani Power.

On Thursday, SEBI issued two different orders stating that there is no evidence of misleading financial statements. And also, illegal fund flows, or violations under the SEBI Act. Therefore, listing obligations and disclosure requirements regulations, or the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP). These regulations were found in the Adani Group’s operations.

This comes after an extensive investigation into allegations made by Hindenburg Research. In January 2024, Hindenburg made allegations about particular group-linked entities, such as Adicrop enterprises, Milestone Tradelinks, and Rehvar Infrastructure. Therefore, they acted as a bridge to move funds between various Adani Firms. They stated that this is artificially boosting financial health and sharp prices. The report caused a steep sell-off across Adani group stocks. And raised so many concerns about corporate governance within the union.

Now, SEBI officially closed proceedings against big shots like Gautam Adani, Rajesh Adani, and Jugeshinder Singh.

According to the news, Adani Enterprises dropped nearly 4% in Intraday trade. But surprisingly, Adani Ports raised around 1.8%, and Adani Power raised almost 7%. The broader Nifty 50 index also edged up. Even though the move was more neutral compared to Adani counters.

Market participants say that SEBI clearance has given a much-needed boost to sentiment around the group. This has cleared doubts that had kept several institutional and retail investors distracted for months. Therefore, many traders now expect short sellers to cover their positions. This could further boost the upside momentum.

SEBI-registered investment advisor Nidhi Saxena from The Trade Bond called this development a big relief for the group and its investors. According to her, this relief allows the Adani group to shift focus back to long-term business expansion. And also, infrastructure growth without the burden of constant scrutiny.

She expects a near-term relief rally, particularly in Adani Enterprises and Adani Ports. These valuations get re-rated as risk perception declines. Although momentum traders could also eye opportunities in Adani Power, which showed strong price action. However, she advised caution that some profit booking causes volatility. This could emerge if markets had already factored in this outcome ahead of time.

How could SEBI’s clean chit impact Adani Enterprises’ stock price?

The Adani SEBI clean chit has boosted investor confidence. A SEBI-registered investment advisor has projected a possible target of Rs 2600 as risk around the stock declines.

Which Adani Group stocks are likely to benefit the most from this news?

Market experts believe Adani Enterprises, Adani Ports, and Adani Power could see strong buying momentum as investors re-enter these stocks.

Are there any risks investors should be aware of despite the clean chit?

Yes, while the news may trigger short-term gains, experts caution about possible volatility. Investors should monitor market reactions before taking big positions.

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