Most of the Adani Group stock prices went down on Monday, wiping out around Rs 5.5 lakh crore from the group's market cap in three consecutive trading sessions. A report from US-based short seller Hindenburg Research said that the Indian conglomerate had engaged in stock manipulation and accounting fraud over the last few decades.
After Hindenburg's claims, the combined m-cap of Adani Group stocks fell to Rs 5.57 lakh crore from Rs 19.20 lakh crore on January 24. Adani Group shares came under intense scrutiny as a result of a report by US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group refuted the claim as baseless.
Adani's response had a mixed effect on the stock group and market. The saga is likely to continue as a hanging risk in the minds of investors in the medium term. A scientific assessment report by a strong independent third party or government is not good in the short term. The market will focus on Union Budget and US Federal Reserve policy, according to Vinod Nair, head of research at Geojit Financial Services.
All eyes would be on Adani Group, followed by Budget 2023, and until there is strength in the indices, it is advisable to stay light and maintain a stock-centric approach, said Osho Krishan, Senior Analyst Technical Derivative Research at Angel One.
Four Adani Total Gas, Adani Wilmar, Adani Power and NDTV out of 10 listed Adani Group companies settled on their respective lower price bands on the BSE today, according to four of the 10 listed Adani Group companies. 10 listed Adani stocks include ACC, Ambuja Cements and NDTV. Adani Green Energy was 19.99 per cent less than the Rs 1,187 price. It was 70 more than its previous close of Rs 1484.50, a little over its lower circuit level of Rs 1,187. Adani Transmission ended up at Rs 1,710, down 14.91 per cent. Its lower price band of Rs 1,607 is a bit over 10, slightly over its lower price band. The 80 were touched in intraday deals. Adani Ports and Special Economic Zone fell by 0.29 per cent today.
On the flip side, Adani Enterprises, Ambuja Cements and ACC jumped up to 4.21 per cent.
Adani Group said that the timing of the publication of the Hindenburg report shows the short seller's intent to damage the follow-on public offering from Adani Enterprises, which is the biggest FPO in India. There has been a tepid response to the issue, despite a sharp fall in shares of Adani Group. Adani Enterprises' stock rebounded today, but it is still trading below the FPO price band of Rs 3,112 -- 3,276 per share.
Indian equity benchmarks settled higher in highly volatile trade as gains in technology and consumer durables countered losses in energy and consumer goods stocks. The 30 share BSE Sensex pack rose 170 points or 0.29 per cent to close at 59,500, while the broader NSE Nifty index moved 45 points or 0.25 per cent to close at 17,648.
Adani Enterprises FPO: Group CFO says significant participation is likely from institutional, strategic investors.
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