Monday was the second day in a row that shares of Adani Total Gas Ltd, Adani Transmission Ltd, and Adani Green Energy Ltd went down even more. Even though the three stocks had left the ASM (additional surveillance measure) structure, they all fell at the same time. Adani Total fell 5% today, reaching the lower end of its price range at Rs 777.45, down from Rs 818.35 at the end of trading yesterday. Adani Transmission fell as much as 4.99% to trade at Rs 840.80, and Adani Green fell 3.2% to trade at Rs 866.70.
The Securities Exchange Board of India (SEBI) and markets came up with the Additional Surveillance Measure (ASM), which is a list of securities that are being watched because of things like price changes, volatility, differences in volume, etc. When a stock is on the short list for the ASM list, buyers should be aware that its price has been moving in a strange way.
The bourses have said that shortlisting securities under ASM is done only for market surveillance and shouldn’t be seen as a bad thing for the company or organisation in question.
Also, the stocks were in the news because the Supreme Court might give the market regulator Sebi three more months to finish its investigation into the Hindenburg Research claims. Sebi started looking into claims that Adani Group companies had done “stock manipulation and financial fraud.”
The market regulator told the top court today that any wrong or hasty conclusion to its investigation into possible failures to disclose regulatory information by billionaire Gautam Adani’s group would not be in the interest of justice and would be illegal.
In a court filing, Sebi said that it has already asked eleven foreign regulators for details to find out if the Adani group broke any rules with its publicly traded shares.
As part of its quarterly review, the New York-based finance company MSCI Global Standard Index said that two Adani stocks, Adani Transmission and Adani Total, would leave the index. On May 31, 2023, the new changes would go into effect.
Since January 24, this year, when US-based short seller Hindenburg Research released a report saying that the Gautam Adani-led conglomerate had manipulated its stock prices and committed financial fraud, the market value of Adani Group shares has dropped by a huge amount. Early this year, the listed Adani companies lost more than $140 billion in value because of the story. But Adani said that none of the claims were true.
The benchmarks for Indian stocks went up in the afternoon, led by the banking, consumer, and technology sectors. At 62,414, the 30-stock BSE Sensex pack was up 386 points, or 0.62 percent, and the wider NSE Nifty index was up 108 points, or 0.59 percent, at 18,422.