The rout in Adani Group stocks started after US-based short seller Hindenburg Research released a report claiming Adani Group's engagement in stock manipulation and accounting fraud scheme over the last few decades
According to Bloomberg, the Hindenburg report, which came on January 24, 2023, wiped out more than $100 billion in the market value of Adani firms as of Thursday
Adani Power, Adani Total Gas, Adani Wilmar, Adani Green, Adani Transmission, Adani Ports, Adani Enterprises, Ambuja Cements, ACC and NDTV are the ten listed Adani Group stocks on Dalal Street
The total m-cap of the Adani group tanked to Rs 11.76 lakh crore on February 1, 2023, from Rs 19.20 lakh crore as on January 24, 2023. Most Adani group stocks are down over 50% from their 52-week highs
Shares of Adani Total Gas tanked the most 51% to Rs 1901.65 from Rs 3,885.45 during the same period, followed by Adani Green Energy (down 40%), Adani Enterprises (down 38%) and Adani Transmission (down 37%)
Adani Ports and SEZ went down 35% followed by Ambuja Cements (down 33%), Adani Wilmar (down 23%), Adani Power (down 22.5%), ACC (down 21%) and NDTV (down 17%)
Shares of Life Insurance Corporation of India have corrected 15% amid a brutal selloff in Adani Group stocks during the same period. LIC's market capitalisation (m-cap) has shrunk to around Rs 65,400 crore
According to the Bombay Stock Exchange data, LIC owned 9% of Adani Ports as of end-December, nearly 6% in Adani Total Gas, a 4.23% stake in Adani Enterprises and 3.65% in Adani Transmission
“If you are a long-term investor and looking to invest in Adani group stocks at present, I would suggest you avoid them right now and wait for the dust to settle down. We don’t have any position in Adani stocks," said Abhishek Basumallick, Chief Equity Advisor, Intelsense
"We believe that very little overvaluation is left to be shed, else market forces have brought them to fair valuations now. We should not forget that these companies are seeing very rapid growth and the business model is more or less inelastic to demand and annuity kind," said Anuj Jain, Research Head and Co-Founder at Green Portfolio
The stocks mentioned in the story are for information purposes only. Investors or market participants should consult their financial advisors before taking any position