CHENNAI: Adani Group shares rallied sharply on Friday after the Securities and Exchange Board of India (SEBI) dismissed key allegations made by U.S. short-seller Hindenburg Research. The regulator ruled that transactions involving entities linked to Adani companies could not be classified as related-party deals under existing rules and did not amount to violations of disclosure norms or market manipulation.
The clean chit covered group chairman Gautam Adani, managing director Rajesh Adani, and several group companies. The decision lifted a major regulatory overhang that had weighed on investor confidence since the Hindenburg report in early 2023.
In early trade, Adani Total Gas and Adani Power led the rally with gains of 8–13%. Adani Enterprises, Adani Ports, Adani Green Energy, and Adani Energy Solutions also advanced strongly, pushing up overall group valuations.
The sharp upmove reflects renewed investor confidence as regulatory risk around some of the most damaging allegations has eased. Analysts noted that institutional and foreign investors, many of whom stayed cautious over the past two years, may now reassess their exposure to the group. However, they also cautioned that not all regulatory or legal uncertainties are fully resolved, and that the sustainability of the rally will depend on the operating performance of individual businesses.
Market experts said the rally may partly be driven by relief buying and short-covering, but sustained gains will require strong earnings delivery and further clarity on pending investigations. For now, the SEBI ruling has offered a significant sentiment boost to the conglomerate, helping Adani stocks recover some of the ground lost since the 2023 sell-off.