All Adani Stocks UP; Adani Green, Adani Total, Adani Power Jump 11-15%; End To Bribery Case After Trump Meet?

Adani Group Stocks: All Adani stocks entered into a strong rally on Monday, May 5th after reports stated that Gautam Adani's representatives have likely met Donald Trump. Expectations of an end to the so-called bribery case against Adani officials including Gautam Adani, are on the cards. Adani Group stocks rose as much as nearly 15% in a single day, with Adani Green Energy, Adani Total Gas and Adani Power emerging as top gainers.

Adani Group Stocks:

During the trading session of May 5th, Adani Green climbed by 10.8% to hit an intraday high of Rs 1003.45, while Adani Total Gas became top performing Adani stock with an upside of 14.12% and an intraday high of Rs 683.7 apiece. Adani Power also gained by 11.32% to hit an intraday high of Rs 584.3 apiece.

Adani Enterprises, Adani Ports, Adani Energy Solutions, and NDT climbed by 8-9%. While cement stocks like ACC and Ambuja Cements soared by 2% to 3.5%. AWL Agri-Business, which was earlier known as Adani Wilmar, also surged by 4.5%.

After market hours, a slight correction was recorded in these stocks. Adani Group stocks ended with upside of 1% to 11.50% on BSE.

Why Adani Stocks Are Rallying?

Adani Trump Meeting:

Adani stocks gained momentum after a Bloomberg report said, representatives for Indian billionaire Gautam Adani and his companies met Trump administration officials about dismissing the criminal charges levied against him in an overseas bribery probe.

According to the report, Adani's team has been initiating talks since earlier this year but gained momentum in recent weeks and could yield a resolution in the coming month or so, if the pace persists.

On the media reports, Adani Green issued a clarification to BSE and NSE on May 5th, saying, "In this regard, kindly refer to the disclosure made by the Company on November 21, 2024, whereby it was submitted that there is no allegations made against the Company in the matter and the Company is not a party to any such proceedings."

Adani Bribery Case:

Last year, in November, Adani Group's chief Gautam Adani and seven other senior business executives were indicated in the United States of America (USA) for bribes worth $265 million to US investors. Additionally, Gautam and his nephew Sagar Adani along with others are accused of bribing Indian government officials for solar contracts. A five-count criminal indictment has been unsealed in federal court in Brooklyn.

As per the statement of the US Attorney's Office that was released in November, between approximately 2020 and 2024, the accused is alleged to have bribed Indian government officials to pay more than $265 million to obtain lucrative solar energy supply contracts with the Indian government. These were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme). The report also revealed that on many occasions Gautam Adani personally met with an Indian government official to advance the Bribery Scheme, and the defendants held in-person meetings with each other to discuss aspects of its execution.

On November 21, 2024, Adani Green and other Adani companies issued a clarification stating that the United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against their Board members, Gautam Adani and Sagar Adani. The United States Department of Justice have also included our Board member, Vneet Jaain, in such criminal indictment.

There are no allegations made against the Company, Adani Green had said.

The bribery case came as another big blow to Gautam Adani who had just came out of the allegations of misleading and brazen stock manipulation, which pushed a market rout of $100 billion in his port-to-power empire. Adani Group has received clean chit from India's supreme court after thorough investigation.