Moody's upgraded two unlisted units of Adani Energy Solutions as well as Adani Green and Adani Green Energy Restricted Group, an unlisted ring-fenced group of solar assets to "stable" from "negative" on Tuesday.

The upgrades come a year after Moody's downgraded the companies following U.S. short-seller Hindenburg Research's accusations of stock manipulation and improper use of offshore tax havens by the billionaire Gautam Adani-led conglomerate, which has denied the allegations.

India's top court's view that there is no "apparent regulatory failure attributable" to the country's markets regulator "have curbed the potential tail risk in a downside scenario," Moody's added.

The rating agency said the key reasons for its upgrades included the conglomerate's ability to repay debt and "high profile equity transactions" by the likes of Qatar Investment Authority and GQG Partners.

Shares of Adani Green, which Reuters reported was likely to tap the dollar bond market, jumped as much as 3.7%. Adani Energy rose 1.9%, while Adani Ports gained 1.3%.

India's benchmark index was down 0.3%.

However, index member Adani Enterprises, the flagship firm of the group, jumped 2.4% after brokerage Jefferies started coverage with a "buy" rating, calling it "India's leading business incubator."

The brokerage said that new businesses like airports and green hydrogen would drive a three-fold rise in Adani Enterprises' earnings through fiscal 2028.

Cantor Fitzgerald, the first brokerage to cover the stock last month, had said its valuation was based on the company's airports, roads, and solar, wind and electrolysers segments.

Here is a list of Moody's outlook actions on Adani Group entities:

Company Name Current Outlook Previous Outlook

Adani Green Energy Stable Negative

Adani Green Energy Stable Negative

Restricted Group-1

Adani Green Energy Stable Stable

Restricted Group-2

Adani Transmission Stable Negative

Step-One

Adani Electricity Stable Negative

Mumbai

Adani Energy Stable Stable

Solutions

Restricted Group 1

Adani Ports and Stable Stable

Special Economic

Zone

Adani Stable Stable

International

Container Terminal

(Reporting by Nandan Mandayam in Bengaluru)