Mark Mobius: US DoJ's Actions Against Adani Are Unnecessary Expenditure, Trump’s Presidency to Change This

New Delhi, Dec 3 (NationPress) The recent indictment by the US Department of Justice (DoJ) against officials of the Adani Group is merely a waste of resources, and it is expected that once President-elect Donald Trump takes office, these unproductive exercises involving government dealings with international businesses will likely diminish, stated renowned global investor Mark Mobius in an interview with IANS on Tuesday.

His remarks arrive amidst growing concerns about the independence of the US DoJ and its actions against the Adani Group, raising suspicions about whether these moves are politically motivated.

“I suspect that when Donald Trump takes office, the individuals he appoints to lead the Justice Department will question the rationale behind these actions, asking, what business do you have meddling in Indian enterprises? Why spend so much on a trial that is unlikely to yield any results?” Mobius shared with IANS.

Mobius, the head of the Mobius EM Opportunities Fund focusing on emerging markets, expressed that there is a strong possibility the Justice Department will shift its focus away from the Adani investigation and the associated trial.

“I foresee a restructuring within the Justice Department in the US, leading to a greater emphasis on domestic matters rather than international affairs,” noted the esteemed investor.

Recently, the DoJ, along with the US Securities and Exchange Commission (SEC), filed an indictment and a civil lawsuit in New York District Court against senior officials of the Adani Group. However, the Adani Group has vigorously denied these allegations, labeling them as 'unfounded', and has announced plans to pursue legal action in its defense.

According to Mobius, many are starting to realize that with Trump’s forthcoming administration, “the current situation with the DoJ in the US will likely dissipate.”

Regarding the performance of Adani Portfolio stocks amidst US-related developments, he remarked that the actions from hedge funds targeting the Adani Group seem to have lost momentum.

“Investors are beginning to recognize that while Adani faces pressures, ultimately, their business will continue to thrive and likely excel in the future,” Mobius observed.

Adani stocks have rebounded significantly from initial setbacks, experiencing almost daily increases on Indian benchmark indices, contributing over Rs 2 lakh crore to their market capitalization in just a three-day surge.

A report from Bernstein regarding Adani Group companies on Tuesday indicated that the Group is now in a significantly stronger position compared to when the Hindenburg allegations emerged in January 2023.

Despite encountering various US-related challenges, the Adani Group maintains a robust standing in four critical areas: absence of share pledges, leverage, debt repayment, and valuations, as noted in the report.

(Nishant Arora can be reached at nishant.a@ians.in)