Adani stocks jump up to 3% intraday on US court relief for Gautam Adani

Adani group stocks: Shares of Adani group stocks gained up to 3.5 per cent in early trade on Tuesday following the relief from a US court to founder and chairman Gautam Adani and his nephew Sagar Adani in US securities fraud charges. 

 

Brooklyn-based US District Judge Nicholas Garaufis dismissed conspiracy, securities and wire fraud charges brought against them in a late-night order, marking an end to Adani's US legal troubles.

 

Following this, all Adani group stocks traded in the green even as the Indian stock market witnessed selling pressure following a spike in crude oil prices.  The flagship Adani Enterprises stock was up 2.6 per cent at Rs 3,080 on the BSE, while Adani Ports added 1.5 per cent in opening deals. Adani Green Energy was the top gainer with a 3.5 per cent rise. Adani Energy Solutions, Adani Power, Adani Total Gas and NDTV gained 1-2 per cent. Cement players, ACC and Ambuja Cement, were higher by around 0.5 per cent. 

 

 

Details of case against Adani in US

A case was filed against Adani in 2024 in the final days of President Joe Biden’s administration. He was charged with agreeing to bribe Indian government officials over $250 million so that a subsidiary of the Adani group could win approval to develop a solar energy plant. Prosecutors also alleged that investors were misled while the group raised more than $3 billion through loans and bond issuances in US markets.

 

However, Adani has consistently denied these allegations. 

 

The US District Judge Garaufis said the charges against the Adanis would be dismissed “with prejudice,” meaning the government cannot revive the case. READ MORE

 

In a statement posted on X, Gautam Adani said, "I welcome the US ‌Court's decision with humility and deep respect for the judicial process."

 

Judge Garaufis allowed the Justice Department's (DoJ) motion after seeking additional explanations from prosecutors over their decision to abandon the case. 

 

In dismissing the charges against Adani, Garaufis said he was satisfied that Adani's November 2024 promise to invest $10 billion in the United States did not factor into the Justice Department's decision. Before approving the request, the judge directed the DoJ to publicly explain its reasons for seeking dismissal and required the defendants to file sworn declarations confirming there had been no promise, offer, quid pro quo or undisclosed agreement connected with the decision.

 

According to Bloomberg report, this court ruling could allow billionaire Adani to expand his businesses in the US. 

Should you consider buying Adani stocks now?

Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that while the immediate market reaction has been positive because earlier US legal developments had triggered sharp moves in Adani shares, investors should avoid treating the court order as a standalone buy signal. 

For a long-term investor, the US court development should be viewed as a reduction in event risk rather than the entire investment thesis, she added.  

"Among the group stocks, Adani Enterprises offers diversified exposure to airports, new energy, infrastructure and emerging businesses; Adani Ports provides comparatively stronger cash-flow visibility; Adani Power benefits from structural power demand; while Adani Green offers high long-term renewable-energy growth but carries higher leverage and execution sensitivity. Investors already holding these stocks can continue to hold with a 3–5 year perspective, while fresh investors should avoid chasing a sharp opening spike and preferably accumulate in phases on volatility," Srivastava advised. 

Khushi Mistry, research analyst at Bonanza, said that the US court’s dismissal of the criminal case against Gautam Adani, Sagar Adani and other defendants is clearly a sentiment-positive development for the Adani Group. 

 

However, investors should distinguish between criminal and civil proceedings, she said. "The SEC’s separate civil matter has been settled through consent, so the latest order should not be interpreted as a blanket judicial finding that all allegations were disproved." 

 

From a stock-market perspective, the immediate impact is likely to be a reduction in the legal-risk discount attached to Adani companies, potentially improving investor confidence, funding access and institutional sentiment, she said, adding that ultimately fundamentals like leverage, cash flows, project execution, valuations and regulatory developments will determine whether the rally is sustainable.

 

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