Adani Group Stocks Rebound After Massive Sell-Off Amid US Bribery Allegations; S&P Lowers Outlook

Most Adani Group stocks rebounded on November 22, gaining as much as 3-4% after the previous day's sharp sell-off triggered by US bribery charges against Gautam Adani and other executives.

By midday, shares of Adani Enterprises had risen 3.1 percent to ₹2,252, emerging as one of the top gainers and contributors to the NSE Nifty 50. The benchmark equity index climbed over 1 percent, gaining 300 points, also buoyed by shares of ICICI Bank, Reliance Industries, and State Bank of India.

Adani Ports and SEZ advanced 1.7 percent to ₹1,133, while Adani Green Energy climbed 3.5 percent to ₹1,186. Other Adani Group companies, such as cement firms ACC, Ambuja, and Adani Total Gas, also recovered to trade in positive territory. However, Adani Energy Solutions declined 3.5 percent to ₹673.

This recovery followed a turbulent session on November 21, during which Adani Group firms collectively lost ₹2.2 lakh crore in market capitalisation, marking one of the group's steepest single-day declines. Adani Enterprises plunged 23 percent, while Adani Green Energy and Adani Energy Solutions each dropped by 20 percent.

The market rout was prompted by allegations from US prosecutors accusing Gautam Adani and his executives of orchestrating a $250 million bribery scheme to secure solar energy contracts in India. The charges also include obstruction of justice and misleading US authorities, further amplifying concerns about the group's governance and financial stability.

Adding to the challenges, S&P Global Ratings revised its outlook on three Adani entities-Adani Electricity Mumbai Ltd, Adani Ports and Special Economic Zone Ltd, and Adani Green Energy Ltd Restricted Group 2 (AGEL RG2)-to negative. While S&P affirmed their ratings, it cautioned that their cash flows could be significantly impacted if the allegations are substantiated, funding costs rise, or access to financing weakens.

S&P also warned that domestic and international banks, along with bond market investors, may impose group-level exposure limits, potentially affecting the Adani Group's ability to raise funds. The conglomerate relies heavily on consistent access to equity and debt markets to support its ambitious growth and refinancing requirements.

Meanwhile, GQG Partners, a US-based investment firm and a major stakeholder in Adani Group stocks, announced a buyback of its own shares following the previous day's 20 percent drop. Shares of Rajiv Jain's boutique investment firm, listed in Australia, rose approximately 4 percent to close at AUD 2.21.