Adani Group stocks surge as chairman refutes bribery charges

In India, shares in Adani Group have experienced a notable recovery following recent legal challenges faced by billionaire Gautam Adani. On November 21, 2024, Adani Green Energy was severely impacted by an indictment related to alleged bribery and fraud schemes, resulting in an 18% decrease on its worst day in six months. As news broke, many investors reevaluated their positions, causing significant sell-offs and a cautious retreat by companies like TotalEnergies, which suspended investments tied to the Adani Group. In a drastic turn, on Wednesday, the company released a statement clarifying that neither Gautam Adani nor his nephew had been charged with violations under the U.S. Foreign Corrupt Practices Act in connection with the indictment, leading to a rebound in stock prices. The stock price of Adani Green Energy surged as much as 19% on Friday, reflecting improvements in investor sentiment. While Adani Energy and Adani Total saw respective rises of 14.4% and 7.2%, these gains indicate a cautious outlook as investors remain alert to the ongoing legal proceedings. Analysts, including Mohit Mirpuri, expressed that the recovery signals a tentative improvement in investor sentiment, but warned that volatility is likely to persist as the context of the allegations unfolds. As the Adani Group navigates its legal challenges, sustained government backing and existing liquidity levels are expected to help mitigate long-term impacts, though the loss of confidence from international markets remains a pressing concern. Financial analysts emphasized that the resolution of these legal issues will heavily influence investor confidence and the future economic viability of the Adani Group.