The overwrought selling in Adani stocks last week had dragged the market. January 27th turned as a black Friday for the billionaire Gautam Adani-backed group’s seven listed stocks which were battered to the point some locked to their lower circuits, while of some of them nosedived into double-digit drops. The losses were overwhelming. Also, the ₹20,000 crore worth follow-on public offer (FPO) faced the heat of amassed selloff. All because of a research report by a US-based firm accusing Adani over stock manipulation and fraud schemes. Adani’s FPO alongside its actions against Hindenburg are some of the key factors that will influence its listed stocks on market bourses in the week ahead.
Last week, on Friday, majority of Adani Group stocks hit their lower circuit which meant that there existed multiple sellers but no buyers.
Three Adani stocks namely Adani Transmission, Adani Green Energy, and Adani Total Gas closed at 20% lower circuits each on January 27th. While Adani Power and Adani Wilmar also took beating to get locked at 5% lower circuits each. Further, Adani Ports also struggled and tumbled by over 16% at the end of the day.
Meanwhile, Adani’s flagship company, Adani Enterprises, which launched its FPO on Friday, plummeted by at least 20% before closing at ₹2,762.15 apiece on BSE.
The massacre in Adani stocks led to steep correction in Gautam Adani’s net worth. Asia’s richest man’s wealth is to the tune of $92.7 billion as of January 29, holding a seventh rank at the Bloomberg Billionaire Index.
According to the index, Adani’s net worth has dropped by $20.8 billion at the latest. However, year-to-date, Adani’s wealth has dipped by $27.9 billion.
Not just that, Adani stocks selloff also dragged the broader markets performance.
Ajit Mishra, VP – Technical Research, Religare Broking said, the carnage in the Adani group stocks cascaded across the board and the banking sector faced the maximum pressure. Participants were already facing challenges due to mixed global cues and caution ahead of the Union Budget and this breakdown has further added to worries.
From the week between January 23rd to 27th, Adani Wilmar and Adani Total Gas stock has dropped by around 7% each. While Adani Power’s weekly drop is around 10%. Adani Enterprises shares have plunged by around 20% in this week. The worst hit were Adani Transmission stock tumbling by nearly 27% in the week followed by Adani Green Energy and Adani Ports equity shares that have dipped by nearly 25% and 23% respectively on Dalal Street.
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