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Indian markets appear to have dismissed coal invoicing allegations by FT, OCCRP against Adani Group

Adani Group’s market capitalization continued to gain for the ninth consecutive day on Wednesday. The group’s market capitalization crossed Rs 16.5 lakh crore on Wednesday, gaining 10.6 per cent in the past nine trading sessions.

The gain continued on a day when London-based Financial Times, citing documents from George Soros-backed Organized Crime and Corruption Reporting Project (OCCRP), in a report, charged the Adani group of fraud and selling low-grade coal as high-value fuel in the year 2013 to Tamil Nadu Generation and Distribution Company.

This suggests that the markets have dismissed the report on the group by OCCRP and Financial Times and it continues to see value in the Adani group stocks.

The consistent rise in the group’s market capitalisation over the past year shows that despite allegations, investors have reposed faith in the Adani group companies.

Group’s market capitalisation has increased by 56.6 per cent in the last year, outperforming the broader market Nifty, which has gained 23.3 per cent during the same period.

This is the third time that two foreign media platforms have published negative reports on the group.
The Adani group denied all allegations and questioned the timing of the latest report when general elections are going on in the country.

The latest report is based on coal supply transactions of 2012-13 when the UPA government was at the centre. The market appears to be viewing it as an external interference to influence the Indian voters.

The news report was cited by opposition leaders including Mahua Moitra of All India Trinamool Congress and Jairam Ramesh of Congress to demand a probe by Joint Parliamentary Committee into the alleged wrongdoing.

However, the strength and resilience shown by Adani group stocks suggest that the investors seem uninfluenced by these kinds of attacks on the group and continue to back Adani group.