What exactly went wrong with Adani group shares on Monday 14 June? Should I sell out all my Adani group stocks?
Answer
Answer
Monday started off with unconfirmed news reports flying around thick and fast that NSDL had frozen 3 FPI accounts over the week end. That became a major concern because these 3 FPI accounts, between them, held close to Rs.43,500 crore worth of Adani Group stocks in their India portfolios. All these stocks have gone up 3-fold to 5-fold in the last one year even as the group market cap of the Adani group had surged to $120 billion in no time.
However, once that news broke out, the day started with most Adani group shares correcting sharply on the back of these media reports. For example, Adani Ports fell -8.36%, Adani Enterprises -6.26%, Adani Total Gas -5%, Adani Transmission -5% and Adani Green -4.2%. If you look at the fall in terms of market value lost, this move wiped out nearly Rs.53,500 crore of value from the group market cap of the Adani group.
The sharp fall was quickly followed by a spate of denials. First, the Adani group top brass came out and called these news reports absolutely baseless. Subsequently, the markets were more convinced when the NSDL also came out and denied such action after which the markets bounced back. We need to see how things pan out on Tuesday.