Adani Enterprises to Adani Green: Adani Group Stocks Surge Up to 13%; What’s

Fuelling the Rally?

In a dramatic rebound, Adani Group stocks stole the spotlight on Dalal Street as shares of key companies in the conglomerate surged as much as 13% intraday on Monday, May 5. From Adani Enterprises to Adani Green Energy, investors saw a sharp uptrend in both price and volume, triggering renewed optimism in what has been one of India’s most closely watched business groups.

The sharp rise came amid positive regulatory signals, fresh foreign institutional interest, and strong operational updates. The rally caught many traders off guard, especially given the stock group’s volatile past post the Hindenburg report saga. But this time, market sentiment appears to be shifting decisively in favour of Gautam Adani-led companies.

Let’s unpack what’s really fuelling this renewed surge across the Adani portfolio and what investors should keep in mind going forward.

Adani Group Rally: Who Gained and by How Much?

Here's a quick look at how individual Adani Group stocks performed during the day's trade:

The group-wide rally was broad-based and not limited to a single vertical, highlighting a confluence of tailwinds benefiting the entire Adani umbrella.

What’s Driving the Rally?

 1. Regulatory Relief from SEBI Investigation

One of the most critical triggers for today’s move was recent updates from SEBI that reportedly indicate the regulator is nearing closure of certain high-profile investigations related to the Adani Group. According to market chatter, SEBI may not find sufficient grounds for further prosecution, at least in several of the cases tied to alleged fund misreporting and foreign portfolio investments.

While no formal closure statement has been released yet, sources suggest SEBI’s stance is softening, and the group may soon be in the clear — removing a long-standing overhang on stock valuations.

“This possible regulatory clarity is acting as a sentiment booster. The group had already weathered intense scrutiny, and if SEBI backs off, expect further upward re-rating,” said a senior analyst at Kotak Securities.

 2. Strong FII Buying and Renewed Institutional Confidence

After months of caution, Foreign Institutional Investors (FIIs) appear to be returning to Adani counters. Bulk deal data over the past two weeks shows strong FII activity in Adani Ports and Adani Enterprises, with large positions being accumulated through block trades.

Some global funds, including those from Middle Eastern sovereign investors, are reportedly increasing their exposure to Indian infrastructure and green energy via Adani companies.

This renewed vote of confidence is pushing retail investors to follow suit.

 3. Green Energy Push: Adani Green and Total Gas Shine

With the Indian government’s continued push towards renewables and energy transition, Adani Green Energy and Adani Total Gas have emerged as key beneficiaries. The companies have:

• Announced capacity expansion plans in solar and wind sectors.

• Secured new PPAs (Power Purchase Agreements) with state governments.

• Received regulatory clearances for long-pending projects.

Moreover, the fall in crude oil prices globally is giving gas distributors like Adani Total Gas an input cost advantage, further sweetening the outlook.

 4. Robust FY24 Operational Results Across Group Firms

Several Adani companies have reported strong quarterly and FY24 results, beating market expectations on revenue and EBITDA margins:

• Adani Ports: Cargo volume rose 12% YoY; revenue grew 17%.

• Adani Power: Higher PLFs and lower fuel costs boosted net profit.

• Adani Enterprises: Growth in mining services and airports drove consolidated EBITDA up 21%.

This solid operational execution, backed by reduced debt and increased cash flows, is being welcomed by the Street.

 5. Global Sentiment on India: A Tailwind for Infrastructure Plays

Global investors remain bullish on India as a long-term growth story. With themes like infrastructure, green energy, and logistics playing centerstage, conglomerates like Adani are natural beneficiaries.

The group’s strategic focus aligns well with macro trends:

• National Logistics Policy

• Hydrogen and solar energy push

• Port-led industrial corridors

This narrative is attracting long-only investors looking for exposure to India’s decade-long growth cycle.

What Should Investors Consider?

 The Positives:

• Regulatory clarity may lead to a PE re-rating.

• Improving fundamentals backed by steady revenue growth.

• Rising global fund interest in India's infrastructure and green plays.

• The group has aggressively deleveraged post-Hindenburg and now looks financially more stable.

 The Risks:

• SEBI or Supreme Court actions are still pending final outcomes — uncertainty remains.

• Some stocks have rallied sharply — expect volatility in the short term.

• High beta nature of Adani counters makes them susceptible to global shocks.

Technical View: Near-Term Levels to Watch

Short-term traders are advised to watch these levels closely. A breach above resistance with volume can offer strong trading opportunities.

🔮 The Road Ahead for Adani Group

Looking ahead, the Adani Group has outlined plans to:

• Double renewable capacity by 2030

• Expand airport operations in Navi Mumbai and other cities

• Invest in green hydrogen, battery storage, and utility-scale solar

• Strengthen logistics integration via its ports and rail projects

The group is also focused on restoring investor trust through better disclosures, ESG ratings, and stronger governance — a key priority following the scrutiny it faced.

From Adani Enterprises to Adani Green, the group-wide rally we witnessed today is a powerful comeback story in motion. It signals not just a shift in sentiment but possibly the start of a new valuation cycle for one of India’s most influential corporate conglomerates.

While risks haven’t entirely vanished, the balance is tilting in favour of optimism. For investors with a long-term lens, Adani Group may now represent a compelling mix of growth, reform, and resilience — provided one is prepared for the ride ahead.