Adani Group stocks witnessed a decent rally on Thursday, with shares rising as much as 9% following the announcement that US-based short-selling firm Hindenburg Research has shut down operations.
Adani Power was the top gainer, rising nearly 9% in early trade; Adani Green also climbed nearly 9%. Adani Enterprises, which has pared most of the gains, was up nearly 7.7% as investors reacted to the news of Hindenburg.
Adani Total Gas, Adani Energy Solutions, and Adani Ports also rose as much as 6.6% in early trade.
WHY IS HINDENBURG RESEARCH SHUTTING DOWN?
The rally in Adani Group stocks comes in the wake of an official statement by Hindenburg Researchs founder, Nate Anderson, who announced the firms closure.
Anderson shared that the decision was part of a long-term plan to wind down operations after completing their investigative projects, including those targeting Ponzi schemes.
Hindenburg Research came under the spotlight in India last year with reports alleging financial irregularities within the Adani Group, causing significant market volatility and wiping billions off the conglomerates valuation.
While Adani Group has strongly denied the allegations, the fallout from Hindenburgs report is something that traders and investors will remember for a long time.
In his statement, Anderson dismissed any specific trigger for the closure, saying, There is not one particular threat, health issue, or personal matter, and highlighted a desire to prioritise family, travel, and personal interests after years of intense focus on his career.
The timing of Hindenburgs closure coincides with increasing scrutiny from US lawmakers regarding the firms activities, adding intrigue to the announcement.
Anderson also expressed support for his former team, some of whom plan to start their own research ventures.
For Adani Group, the end of Hindenburg Research marks the conclusion of a turbulent chapter, as investors turn their focus back to the companys operational performance and growth prospects.
