Adani Enterprises Ltd Soars After Supreme Court Verdict
Shares of Adani Enterprises Ltd experienced a notable surge of over 9% during Wednesday’s trading session following the Supreme Court’s verdict on the Adani-Hindenburg Research case. The court rejected reliance on the OCCPR report and any third-party organizations, emphasizing the need for verified evidence. The Securities and Exchange Board of India (SEBI) has already completed investigations into 22 out of 24 allegations, with a directive to finalize the remaining two cases within three months.
Market Reacts to Supreme Court Decision
Prior to the verdict, Adani Enterprises’ shares rose by 9.14%, reaching Rs 3,199.45. This propelled the company’s total market capitalization to nearly Rs 3.65 lakh crore. However, profit booking ensued post the court’s decision. Despite this, the stock has rallied by an impressive 215% from its 52-week low of Rs 1,017 in February 2023, triggered by Hindenburg’s controversial report.
Analyst Perspective and Technical Outlook
Vineet Bolinjkar, Head of Research at Ventura Securities, dismissed Hindenburg’s allegations, advising investors to hold Adani stocks for the long term. Adani Enterprises’ shares are currently 18% below their 52-week high at Rs 3,879, and technical analysts suggest further upward movement. Avdhut Bagkar, a Derivatives & Technical Analyst at StoxBox, highlighted the breakout from consolidation and positive moving average crossovers, predicting a bullish uptrend with a target of Rs 3,400.
In conclusion, the Supreme Court’s decision has provided a positive outlook for Adani Enterprises, offering clarity on the allegations. The market reaction, though initially favorable, experienced some profit booking. Analysts remain optimistic about the stock’s long-term potential, emphasizing the importance of considering the broader market and regulatory context in evaluating such cases.