Mark Mobius Predicts US DoJ’s Indictment Against Adani Will Eventually Fade Like Hedge Fund Claims
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New Delhi, Dec 3 (NationPress) In spite of previous allegations from hedge funds, the Adani Group has made a remarkable resurgence in the stock market. Global investor Mark Mobius stated on Tuesday that the recent indictment by the US Justice Department is likely to fade away, and the group’s operations will continue to flourish.
The stocks of Adani are experiencing daily surges on Indian stock exchanges, with a remarkable addition of over Rs 2 lakh crore to their market capitalization in just three days following the indictment.
In the last five trading sessions, Adani Enterprises saw an increase of 14.79%, Adani Green Energy soared by 43%, and Adani Power rallied over 20%.
Additionally, Adani Ports and Adani Energy Solutions experienced gains of 12.79% and 29.82% respectively.
During this surge, the group’s FMCG company, Adani Wilmar, increased by 7.17%, while the gas distribution entity Adani Total Gas climbed by 29.46%. The cement firms within the group, Ambuja and ACC, rose by 13.89% and 8.13% respectively.
Mobius remarked to IANS that, akin to the hedge fund concerns, this issue would also diminish over time.
"I believe many are starting to see that with Donald Trump set to take office on January 20, the DoJ matter in the US will likely resolve itself," he stated.
"The scenario with the hedge funds targeting Adani also appears to have subsided. Many investors have begun to recognize that, despite the pressures, the Group’s business will continue to operate well and likely prosper," the seasoned global investor conveyed to IANS.
Earlier in August, Indian investors dismissed the Hindenburg allegations, showcasing their confidence in the robust fundamentals of the market and overall economic growth, leading to a surge in Adani stocks.
The Adani Group has also strongly refuted the allegations as being "malicious, mischievous, and manipulative selections of publicly available information" aimed at reaching "predetermined conclusions for personal gain, with complete disregard for facts and the law."
