Tale of the Tape 

Howdy folks!

Nifty (-0.4%) and Sensex (-0.5%) snapped their three-day winning streak, as investors rushed to book profits. Overall, markets still logged their third straight weekly gains, which is a positive. Broader markets ended barely in the green, with Smallcaps (+0.2%) seeing muted buying. The advance-decline ratio was evenly split.

It was an even mix of red and green across sectors. PSU Banks (+1.2%) and Energy (+0.9%) stood out. NBFCs (-0.6%) and IT (-0.5%) were hit by selling pressure.

In today’s issue of the Daily RIp, we unpack the SEBI clean chit to the Adani Group, take a look at Saatvik Green Energy’s big IPO, cover the weekly shakers and movers and more.

Honourable Mentions:

Vodafone Idea zoomed +8% after the GOI backed the company’s plea for AGR relief. PS - the next hearing will be on September 26. Redington was up +3% after the iPhone 17 launched in India.

Check out the NSE 500 heatmap:

Stock
Major Relief For Adani Group

Adani Group stocks zoomed after SEBI gave it a clean chit in key allegations made by Hindenburg Research. FYI - Adani Enterprises, Adani Ports and Adani Total Gas rallied between +5% and +10% intraday. This is a BIG win for Adani and removes a major overhang, so here’s a quick breakdown of what SEBI found in its investigation.

Recap - way back in 2023, Hindenburg claimed that several Adani firms received a LOT of funding from companies that were alleged fronts for the Adani Group itself. Why would anyone want to do something like this? Well, Hindenburg said it was to get around ‘related party’ disclosures. When any listed company does transactions with another listed firm who has the same owner, they need to disclose it as a related party transaction aka RPT. This is so investors have all the information and know everything is above the board.

Specifically, Hindenburg claimed that three firms -- Adicorp Enterprises, Milestone Tradelinks and Rehvar Infrastructure -- loaned millions of dollars to Adani Power and Adani Enterprises. And that this money was gotten from other Adani Group companies.

SEBI, in its probe, however found that all three companies weren’t related parties at all. And because the RPT allegation didn’t hold -- the rest (that it was fraud, that it was a violation of disclosure norms) don’t hold up either. The regulator’s whole-time member Kamlesh Varshney also confirmed that those specific transactions couldn’t be classified as “manipulative”, “fraudulent” or even an “unfair trade practice”. 

As a result, SEBI proceedings have been closed in these cases. Gautam Adani took a victory lap on X with the money quote of the day: “After an exhaustive investigation, SEBI has reaffirmed… that the Hindenburg claims were baseless… We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology”.

Specials
Auto Stocks To Buy After GST Cut!

The Nifty Auto Index is trading near its all-time high after GST 2.0 reforms spark hopes of a blockbuster festive season. Here are 3 stocks that market experts and SEBI RAs are currently tracking on Stocktwits.