Adani Group Stocks: Why Are Adani Shares Falling Today? Key Details Inside
Adani Group Stocks Slump : Adani Group stocks witnessed a significant decline on February 19, with most of the group’s shares trading in the red during afternoon trading. This drop came after reports surfaced that the U.S. Securities and Exchange Commission (SEC) has sought assistance from the Indian government to serve notices to Gautam Adani and his nephew Sagar Adani in connection with alleged securities fraud and bribery cases. According to a report by Reuters, the SEC has approached India’s Ministry of Law and Justice to help deliver the notices, as both individuals are currently in India and not under U.S. custody.
Adani Group Stocks Performance on February 19
During afternoon trading, all 10 companies under the Adani Group were trading lower. Adani Green Energy saw the steepest decline, falling 3.20% to ₹869.80. Meanwhile, the group’s flagship company, Adani Enterprises, dropped 1.55% to ₹2,185.00. Adani Ports also slipped 0.2% to ₹1,083.30.
Other Adani Group stocks, such as Adani Energy Solutions, Adani Total Gas, and Adani Power, also experienced declines of 0.52%, 0.2%, and 0.52%, respectively. Despite the overall bearish trend in Adani stocks, the broader market remained positive, with the Nifty-50 index gaining 0.2% to reach 22,990.
What’s Behind the Decline?
The drop in Adani Group shares follows reports of the SEC’s investigation into alleged securities fraud and bribery involving Gautam Adani and Sagar Adani. The U.S. regulator has accused Adani Green Energy of bribing Indian officials to secure power contracts and misleading U.S. investors about its anti-corruption policies.
This case dates back to November 2024, when U.S. federal prosecutors first raised allegations against the company. The SEC has since filed a separate civil lawsuit, distinct from the criminal case pursued by the U.S. Department of Justice. The Adani Group has denied these allegations, calling them “baseless” and vowing to take all legal measures to defend itself.
Impact on Adani Group Stocks
This isn’t the first time Adani Group stocks have faced such challenges. In November 2024, similar allegations led to a sharp decline in the group’s shares and dollar bonds, marking one of the steepest drops since the Hindenburg Report in 2023. However, the group managed to recover by aggressively reducing debt and raising new funds.
What’s Next for Adani Group Investors?
While the current news has created uncertainty, the Adani Group has a history of bouncing back from setbacks. Investors should keep a close eye on developments in the legal proceedings and the group’s efforts to address these allegations. As always, it’s crucial to consult with financial advisors before making any investment decisions in such volatile conditions.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. The stock market is subject to risks, and investors should conduct thorough research or consult a financial expert before making any decisions.
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