Home / Companies / News /  Selling pressure in some Adani group stocks eases

Mumbai/New Delhi: Stocks of Adani group companies ended up mixed on Monday, as weekend assurances by the government and regulators and promoters’ plan to repay share-backed loans eased selling pressure in some of them.

Four out of 10 listed Adani group companies—Adani Ports, Ambuja Cements, ACC and NDTV—gained. Adani Ports topped the gains, closing almost 10% up. However, bearish sentiment persisted on Adani Transmission, Adani Green and Adani Power, which remained locked at their lower circuits, denying desperate sellers an exit.

Adani Enterprises fell by 0.74%.

The market capitalization of listed Adani group companies fell by 27.440 crore from the previous session to 9.8 trillion. Since US short-seller Hindenburg Research alleged accounting fraud and manipulation on 24 January, the total market value of these companies has halved by a whopping 9.37 trillion.

Over the same period, the Sensex and Nifty fell by just 0.77% and 1.95% each —the latter index has Adani Enterprises and Adani Ports among its 50 constituents—reflecting the relative resilience of the benchmark indices.

While Adani Ports gained 9.46% to close at 546.05, followed by ACC (2.24%) and Ambuja Cements (1.5%), no shares changed hands on Adani Transmission, Adani Green, Adani Total Gas, Adani Power and Adani Wilmar, all of which hit their lower circuits at the opening and remained locked for trades.

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Except for Adani Transmission, which has a 10% price band, the other Adani stocks can move in a 5% band during the trading session.

“The main investor concern was the impact on the broader market from the Adani crisis," said Siddhartha Khemka, research head (retail), Motilal Oswal Financial Services. “That fear has abated, and with the promoter planning to revoke pledges on some of its holdings, more easing of pressure can be expected in a few counters."

V.K. Vijayakumar, chief investment strategist at Geojit Financial Services, said that after the Adani crisis broke out, “the market has been on a twin track—crash in Adani stocks and stability in the rest of the market. The banking segment, which also came under pressure because of fears of the crisis impacting banks, has recovered. The crisis is unlikely to pose any systemic risk to the Indian banking system. Excellent results from ITC and SBI are likely to support the market." Foreign portfolio investors sold shares worth a provisional 1,218 crore, while domestic institutions remained net purchasers by almost a similar amount on Monday.

An 89 paise fall in the rupee to 82.73 a dollar dragged down metal stocks like Tata Steel, Hindalco and JSW Steel, which fell 2.4-2.8% and Kotak Bank, which fell almost 2% to close at 1,747. The market is expected to remain volatile ahead of the monetary policy decision on Wednesday.

Finance minister Nirmala Sitharaman on Friday stressed that the exposure of Life Insurance Corp. of India and State Bank of India to Adani Group was within permitted limits and that the regulators were up to speed in market regulation.


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