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All Adani stocks in red after reports came about the US government widening investigation

Submitted by admin on March 22nd, 2024

Shares of all Adani Enterprise Ltd plummeted lower on March 18. It happened after Bloomberg reported that the US Government had launched a widened investigation of the conglomerate over suspected bribery.

The stock of all the 10 Adani Group companies plunged about 4 percent in early trade. The Special Economic Zone and Adani Ports fell about 3 percent.

At 11.03 am, Adani Power Ltd and Adani Wilmar Ltd shed over one percent while Adani Energy Solutions Ltd, Adani Total Gas Ltd, Adani Energy Solutions Ltd and Adani Green Energy Ltd were trading 2-3 percent lower.

A March 15 report by Bloomberg mentions that the US Government was probing into the founder and Chairman Gautam Adani’s conduct and whether Adani affiliates or entities of the company had any role in bribing Indian officials for energy products or preferential treatment.

The US Attorney’s office for the Eastern District of New York and the Department of Justice’s fraud unit were looking into the matter. Adani denied being aware of any such investigation against himself or his firm.

The Bloomberg report made the revelations a year after the Indian business tycoon Adani was accused of market manipulations and fraud by Hindenburg Research. The conglomerate had refuted any such allegations and was absolved of all charges by Securities and Exchange Board of India.

At 11.25 am, shares of Adani Enterprises were 2.2 percent lower at Rs 3, 605. The stock has made gains of about 70 percent in the last year. Adani Ports plunged by about 3 percent on March 18 but soared more than 87 percent in the last year.

The benchmark Nifty dropped 0.3 percent at 21,962.40. The 30 stocks of total Nifty 50 stocks were trading lower and 20 in the green.