'CEO Sued' Indian Adani Group's Stock Surges Sharply in One Day

The stock price of the Adani Group, an Indian conglomerate, which had plummeted following news that its head was sued for securities fraud in the United States, sharply rebounded on the 22nd (local time) after just one day.

Adani Group / Photo by AFP·Yonhap News

According to major foreign media, the market capitalization of Adani Group affiliates in the Indian stock market fell by about $1.2 billion (approximately 1.7 trillion KRW) that day. This was because only 4 out of 10 affiliate stocks closed lower. This is a significant recovery compared to the $27 billion (about 37.9 trillion KRW) wiped out the previous day.

On that day, the Indian stock market recorded its largest gain since early June, supported by the rebound in Adani Group’s stock price. The Nifty 50 index rose by 2.39%, and the BSE Sensex index increased by 2.54%. As a result, the Indian stock market broke free from a two-week-long downward trend.

Bloomberg reported that the expectation that the ruling Bharatiya Janata Party (BJP), led by Indian Prime Minister Narendra Modi, would win the Maharashtra state assembly elections, including the economic capital Mumbai, influenced the market.

Earlier, on the 20th, some group officials including Chairman Gautam Adani were indicted by the U.S. prosecutors on charges of falsifying financial statements to secure tens of billions of dollars (trillions of KRW) from global financial firms.

In India, suspicions have long been raised mainly by opposition parties that the Adani Group colluded with Prime Minister Modi during its rapid growth over about 30 years to become India’s largest logistics and energy company. Chairman Adani and Modi are both from the western state of Gujarat.