Adani Group Stocks Rally Despite Share Market Weakness. Here's Why

Stock Market Today: Shares of Adani Enterprises, Adani Ports, Adani Power, Adani Green Energy and other group companies rose after a US court dismissed criminal charges against chairman Gautam Adani and his nephew Sagar Adani.

Adani Green Energy led the gains. Its shares rose 3.5 per cent in early trade. Adani Enterprises gained 2.6 per cent to Rs 3,080 on the BSE. Adani Ports rose 1.5 per cent. Adani Power, Adani Energy Solutions, Adani Total Gas and NDTV also traded higher.

Significantly, the relief comes at a time when the broader Indian market was under pressure. Uncertainty over US-Iran deal and rising crude oil prices were weighing on investor sentiment.

What Happened In US Court?

The case dates back to 2024. US prosecutors had accused Gautam Adani and others of agreeing to pay more than $250 million in bribes to Indian government officials. The alleged aim was to help an Adani Group subsidiary secure approval for a solar power project.

Prosecutors had also alleged that US investors were misled while the group raised more than $3 billion through loans and bond issuances in American markets.

Adani Group has consistently denied the allegations. The case was later put on hold after the US Justice Department decided it would no longer pursue the criminal prosecution.

But the matter was not immediately over. US District Judge Nicholas Garaufis wanted the Justice Department to explain why it was dropping the case. He also questioned whether Adani's earlier pledge to invest $10 billion in the US had any connection with the decision.

The judge has now approved the request to dismiss the criminal charges. More importantly, the charges were dismissed "with prejudice". This means the US government cannot simply bring the same case back again.

Why Are Adani Shares Rising?

The court order removes a major legal uncertainty that had been hanging over the group. That is what investors are reacting to.

The immediate market response was positive. The court decision reduces what investors call "event risk" -- the uncertainty created by a major legal or regulatory development.

Abhishek Bhilwaria, Partner at BhilwariaFinserv, said, "The comprehensive green sweep across the Adani portfolio underscores a massive sigh of relief from the investor community. With the overhang of the US legal allegations permanently removed, the market is quickly shifting its focus back to the conglomerate's aggressive growth trajectory, strong cash flows, and massive domestic infrastructure projects."

What Did Gautam Adani Say?

Gautam Adani has welcomed the US court decision. In a post on X, he said he accepted the US court's decision with "humility and deep respect for the judicial process". 

The post added, "Throughout this challenging period, our faith in truth, fairness and the rule of law remained unwavering. My deepest gratitude to those who never lost faith in us, in the system and in India's capacity for justice. We will continue doing what matters: building for our nation, creating value that outlasts us and serving a purpose larger than ourselves."

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)