The Supreme Court panel on the Adani group share crash will investigate volatility in the overall stock market.
But it is the Adani group stocks that have displayed greater volatility than the general market. (see chart) The top court on Thursday said a six-member panel under former Justice Abhay Manohar Sapre will assess and suggest a regulatory framework to protect investors against market volatility.
The top court is hearing petitions relating to a report by US short-seller Hindenburg that alleged fraud by Adani. The broader markets did come under pressure since the Hindenburg report was released on January 24, but they were influenced by multiple factors such as the war in Ukraine, global central banks raising their rates and inflation.
However, the fall in some of the Adani group stocks was much more than the benchmark index. For instance, at Thursday’s closing price, the Adani Total Gas share is down 81 per cent from its 52-week high of Rs 3998.35 touched on January 23. However, the 30-share Sensex was lower only 3.39 per cent from January 24.
The constitution of the panel was a talking point in social media forums with some welcoming the development, while others pointed out there should have been at least a former Sebi chief or a senior official from the market regulator in the committee.
The panel will submit its report in a sealed cover in two months. Observers said it remains to be seen if its findings and recommendations are released at a later stage. However, over the past few sessions, the massive selling pressure seem to have ebbed.
Adani Enterprises on Thursday plunged around 10 per cent to hit a low of Rs 1,408.10 on the BSE. However, it staged a stellar turnaround after news came in that the Supreme Court has appointed the committee. Shares of the Adani group flagship settled at Rs 1,606.70 — a rise of Rs 41.25 or 2.69 per cent over the last close, a sharp gain of 14 per cent from the day’s low.
The shares of Adani Transmission rallied 5 per cent, Adani Green Energy gained 4.99 per cent, Adani Wilmar 4.99 per cent and Adani Power by 4.98 per cent. The cumulative market valuation of the 10 Adani-listed companies stood at Rs 7.86 lakh crore at the end of trade on Thursday
