INSUBCONTINENT EXCLUSIVE:
Adani Group stocks continued to reel under pressure even a month after the US-short seller Hindenburg Researchs scathing report, alleging
irregularities in the group, was made public on January 24.
The 10 group stocks have lost an average of Rs 52,343 crore each day given that
the release of the report
The overall market capitalisation or m-cap erosion for the group has been Rs 12.05 trillion ($145 billion), or 63 percent, from Rs 19.2
trillion in simply one month-- in what is called the biggest-ever wipeout of wealth worldwide.
Gautam Adanis ranking on the Bloomberg
Billionaires Index has actually slipped from number 4 on January 24 to number 29, with a disintegration of near $80 billion in wealth in
simply 23 trading sessions.
With a total m-cap of Rs 7.16 trillion, the conglomerate is now 4th biggest after the Tata group, Reliance and
Before the Hindenburg report, the Adani Group ranked number two-- just behind the Tatas.
As a result, Indias m-cap too has actually fallen
by Rs 20.4 trillion-- from Rs 280.4 trillion to Rs 260 trillion-- during the duration, with the nations ranking on the global m-cap league
table falling from five to seven
Bulk of this erosion has actually been on account of the fall in Adani Group stocks.
The Nifty 500 index-- a gauge for the efficiency of the
countrys top 500 stocks-- has actually declined nearly 5 per cent given that January 24, signally that the Adani legend has actually
likewise weighed on the total efficiency of the market.
The fall in the Adani Group stocks has actually affected the average financier on
On January 30, insurance coverage major Life Insurance Corporation, in a declaration, had actually stated that its overall purchase worth of
Adani Group stocks exercised to Rs 30,127, which has now declined to around Rs 25,000 crore
To be sure, one can not establish if the state-owned insurance provider has sold any of its Adani holdings or bought more shares given that
the release of the Hindenburg report.
In contrast, domestic mutual funds had actually restricted direct exposure to the firms
The majority of it is through index funds and exchange traded funds connected to the Nifty 50 and Nifty Next 50 index.
Adani Enterprises and
Adani Ports - & SEZ, down 62 per cent and 27 per cent, respectively, because January 24, are part of Nifty 50 index, which is tracked by
funds with possessions under management of over Rs 2 trillion
Although both stocks now have a combined weighting of less than 2 per cent.
As completion of December 2022, retail investors held between 1
percent and 11 per cent in the 10 Adani Group stocks
The greatest-- 11 percent in ACC
Direct retail holdings in Adani Total Gas, Adani Transmission and Adani Green Energy-- which have decreased the most-- stood at 2 percent, 1
percent and 2 percent, respectively.
