Adani Shares Jump Over 13%, Here's What Led to the Surge

Adani Bribery row: All Adani stocks witnessed a surge yet again. On Friday, nearly all the group companies were trading in the green territory on the bourses. Shares of Adani Green Energy experienced the highest surge and were trading at Rs 1,233.75, up by over 13 per cent on the National Stock Exchange.

The larger investor optimism came after major Japanese banks, including Mizuho Financial Group, Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group, indicated their confidence in the conglomerate.

According to sources cited in a Bloomberg report, Mizuho Financial Group Inc. believes that the recent development will not have any long-term impact on the group firms and plans to continue supporting the conglomerate. Other big names in the banking space have also reiterated their confidence in the conglomerate.

At 11:07 am, the shares of Adani's renewable arm, Adani Green Energy, were trading at Rs 1,213.35, up by more than 11 per cent on the National Stock Exchange. Adani Energy also followed the trail and surged by more than 10 per cent on the bourses.

But not all are convinced

While the stance of the Japanese bank did boost investor sentiment, other global financial giants seem to have taken an altogether different take on the Adani stocks.

For instance, Barclays Plc is reevaluating its exposure to the Adani conglomerate. It's worth mentioning that Barclay's has long been a major financial partner but has now temporarily suspended offering new loans or financing to the group.

Earlier, a Reuters report also suggested that many domestic banks, including SBI (State Bank of India) are reviewing their exposure to the Adani group.

Banks with limited exposure to the conglomerate, like Canara Bank, IDBI Bank and Union Bank, were also following the same path. However, sources cited in the report mentioned that this exercise is unlikely to result in any immediate changes to these banks' credit policies toward the group.