Shares of several Adani Group companies came under heavy selling pressure after fresh developments related to a US regulatory case. The fall wiped out nearly $12.5 billion in market value in a single trading session, making it one of the biggest single-day declines for the group in recent months.
The selling was triggered after reports said the US Securities and Exchange Commission (SEC) has asked a New York court for permission to send legal summons to senior Adani Group officials.
What Triggered the Big Fall in Adani Stocks
The concern started after news emerged that the US SEC is facing difficulty in officially serving notices to Gautam Adani and Sagar Adani. Due to this delay, the regulator has now requested the court to allow the summons to be sent through email.
This move revived investor worries about a case related to alleged bribery and incorrect disclosures linked to overseas fundraising. Even though the case is not new, the latest court step surprised markets and increased uncertainty.
Which Adani Stocks Were Hit the Most
Many Adani Group stocks witnessed sharp declines during the day:
- Adani Green Energy crashed over 13% after reporting weak quarterly profit
- Adani Enterprises, the group’s flagship firm, fell close to 10%
- Adani Ports dropped around 8% and became one of the top losers on Sensex
- Adani Power, Adani Total Gas, and Adani Energy Solutions also declined sharply
Other companies like Ambuja Cements, ACC, NDTV, and Sanghi Industries were also trading in the red, showing broad-based selling across the group.
Weak Earnings Added More Pressure
Apart from regulatory concerns, recent poor quarterly results added to investor nervousness.
Adani Green Energy reported a steep fall in profit compared to last year, while Adani Energy Solutions posted lower earnings mainly due to higher tax expenses. Weak numbers during uncertain times often increase selling pressure, which is exactly what happened in this case.
Why the US SEC Case Matters to Investors
The US SEC case is linked to rules that apply to companies raising money from American investors. These laws strictly ban bribery and misleading statements, even if the company operates outside the US.
According to the allegations, some Adani Group executives are accused of giving false information related to business practices. While the case is still ongoing, investors fear possible penalties or long legal battles.
Adani Group’s Response to the Allegations
The Adani Group has strongly rejected all allegations. The company has stated that the claims are false, baseless, and misleading.
The group maintains that it follows all laws and regulations in India and abroad and will fight the case legally. In the past too, the company has denied similar allegations and said it remains financially strong.
Impact on the Indian Stock Market
The sharp fall in Adani stocks also affected the broader market. Benchmark indices like Sensex and Nifty ended the day lower, as heavyweight stocks dragged the indices down.
Market experts say such news-based selling shows how sensitive markets are to global regulatory actions, especially when large business groups are involved.
What Analysts Are Saying
Market analysts believe the timing of the SEC’s move caught investors off guard. Many traders assumed the issue had cooled down, but the fresh legal step brought the matter back into focus.
Experts feel volatility in Adani stocks may continue until there is more clarity from US courts or official responses from regulators.
What Should Investors Do Now
Financial advisors suggest retail investors should avoid panic selling and instead focus on:
- Company fundamentals
- Long-term business performance
- Official updates from regulators and the company
High volatility is expected in the short term, so cautious investing is advised.
Conclusion
The sharp fall in Adani Group stocks highlights how global regulatory actions can strongly impact Indian markets. While the group has denied all charges, investor confidence has been shaken due to legal uncertainty and weak earnings. In the coming weeks, market sentiment will largely depend on further court developments and clarity from US authorities. Until then, Adani stocks are likely to remain under close watch.
FAQs
What is the reason behind the fall in Adani Group stocks?
The fall happened after reports that the US SEC has approached a court to send legal summons to top Adani officials, reviving concerns over an ongoing regulatory case.
How much market value did Adani Group lose?
The group lost an estimated $12.5 billion in market capitalisation in one trading session.
Has Adani Group accepted the allegations?
No. The Adani Group has completely denied the allegations and said it will take legal steps to defend itself.
Which Adani stock fell the most?
Adani Green Energy saw the sharpest fall, dropping over 13% after weak profit numbers and regulatory concerns.
Will Adani stocks recover soon?
Recovery depends on legal clarity, company performance, and investor confidence. Short-term volatility is expected, while long-term movement will depend on fundamentals.