Adani Group stocks continue slide; short seller claims on stock manipulation

Adani Group stocks continued their downward trend in Tuesday's trade, in line with the weakness in domestic equity benchmarks. The stocks started to tumble after a report by US-based short seller Hindenburg Research said that the Indian conglomerate had engaged in stock manipulation and accounting fraud over the last few decades. Adani Group refuted the claim as baseless.

In an interview with Business Today, the group accused Hindenburg of not doing proper research and copy-pasting from the company disclosures.

Adani Group said that the timing of the publication of the Hindenburg report shows the short seller's intention to damage the follow-on public offering from Adani Enterprises, which is the biggest FPO in India. Four out of 10 Adani stocks slipped to their lower price bands and two hir their one-year low levels, according to the stock-specific front. The 10 listed Adani stocks include ACC, Ambuja Cements and NDTV. Adani Power, Adani Total Gas, Adani Wilmar and NDTV touched their respective lower circuit levels today, while Adani Green Energy and Adani Transmission hit their 52 week lows.

Shares of Adani Power fell 5 per cent in early trade to hit a day low of Rs 223.90 over a previous close of Rs 235.65. The counter was down for the fourth time in a row. The stock lost 18.52 per cent in four sessions.

Adani Total Gas fell by 10 per cent to reach a day low of Rs 2,112. The stock has lost 46.08 per cent in six days.

Adani Wilmar plunged 5 per cent to its lower price band of Rs 466.90. The counter has declined 18.54 per cent in four days. NDTV shares fell to the same tune 5 per cent to hit their lower circuit level of Rs 231.40. NDTV has dropped 18.59 per cent in five sessions.

Adani Green's shares fell by 9.61 per cent to hit their 52 week low of Rs 1,073. The stock was slightly above its lower circuit 10 per cent of Rs 1,068. Adani Transmission fell 8.63 per cent to reach its one-year low of Rs 1,562. The stock turned positive in late-morning deals.

On the third day of bidding Day 3 there were bids for 27,89, 884 shares by Adani Enterprises' Rs 20,000 crore follow-on public offer FPO. The issue has received a tepid response despite a drop in shares of Adani Group. Adani Enterprises stock went up, but it is still trading below the FPO price band of Rs 3,112 -- 3,276 per share.

The Adani crisis will cause market sentiments to be pushed to the back burner if the FPO sails through via institutional investment, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Adani Ports, Ambuja Cements and ACC also advanced today.

The Indian equity benchmarks extended their fall in today's trade, dragged down by financial and technology stocks.