PremiumChanges for Adani securities associated with its MSCI Global Investable Market Indexes are due to be announced on Thursday. Adani Group shares had recouped losses for two consecutive sessions after witnessing a sharp selloff earlier this month. The MSCI review however led to a dip in company stocks
MPs from Opposition parties are protesting in Parliament premises and have attacked the PM Narendra Modi-led BJP government over the Hindenberg-Adani row. Replying to the Motion of Thanks Debate in Parliament today, PM Modi has refuted the allegations leveled against his government.
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Sustainalytics downgraded corporate governance-related scores for three of India's Adani Group companies on ethics concerns, the sustainability ratings company said on Wednesday, citing questions a short-seller raised last month, reports Reuters.
The lowered scores, including for Adani Green Energy and Adani Transmission, come after a Jan. 24 report from short-seller Hindenburg Research alleged accounting fraud and stock manipulation at the sprawling Indian conglomerate, hammering the shares of its listed companies and the wealth of founder Gautam Adani.
With Saab and Adani Group having decided not to go ahead with the agreement for manufacturing Gripen E fighter in India, Mats Palmberg, India Head of the Swedish aerospace and defence company, said on Thursday that it was "mutual decision".
An agreement was signed in 2017 between Adani Group and the Swedish aerospace and defence company to make fighter jets in India. "The MoU between Saab and Adani expired in 2019 and the parties mutually agreed not to renew the same (at that point of time)," Mats Palmberg said at a press conference here. The agreement was for manufacturing 114 multi-role fighter aircraft for the Indian Air Force which was expected, at that time, to be produced under a strategic partnership programme. Saab is one of the companies competing for the tender. However, after the Request for Proposal was issued, the project has not seen any forward movement.
Opposition leaders expressed disappointment over Prime Minister Narendra Modi's reply to the debate on the motion of thanks on the President's address in Rajya Sabha and said he "did not talk about the main issue" raised by them.
Congress leader Prithviraj Chavan referred to the Hindernberg-Adani row and said opposition parties had raised questions about investments of SBI and LIC in the Adani group whose shares had seen a steep downfall.
"PM Modi did not talk about the main issue neither in Rajya Sabha nor in Lok Sabha. The role of Modi government in this entire Adani controversy was not answered," Chavan alleged.
"We (Congress) are worried about the common man and the losses they have incurred due to their investments in LIC and SBI. PM Modi will continuously attack the Congress party in the session but will not answer the main issue," he added.
Financial index provider MSCI on Thursday said that it is reviewing the free float status of some Adani Group securities after market participants flagged concerns over eligibility of some of the group firms' securities for its indexes. Read here
LIC Chairman M R Kumar says, will meet Adani Group's top management soon.
"Though our investor team has already sought clarifications from the Adanis, our top management could contact them yet as we have been busy preparing the results. We are soon going to call them to meet us and explain. We want to understand what is happening in the market and in the group," the chairman told reporters at the earnings conference on Thursday.
"We'll be calling them in sometime soon to know how are they managing the whole crisis," Kumar added.
Aam Admi Party (AAP) MP Sanjay Singh moved a suspension of business notice in Rajya Sabha on Thursday demanding a discussion on the Hindenburg report against Adani Enterprises under Rule 267.
On Wednesday, Singh demanded suspension of business under rule 267. However, the chair rejected the notice following a walkout by the AAP.
The notice said that the public sector banks and LIC had lost money in the Adani Group case after the Hindenburg report.
Congress party chief Mallikarjun Kharge on Thursday questioned the deletion of remarks made by his party MP Rahul Gandhi in the parliament yesterday.
"Expunging of words should be done after considering all rules. We have also studied the rules as to what words they can't expunge," Kharge told reporters on deletion of some remarks made by Rahul Gandhi in Lok Sabha.
Deletion of a parliamentarian's remarks means that they cannot reproduced or reported in any form. Expunging Rahul Gandhi's remarks has stirred a controversy, with the opposition saying that the government is censoring statements in parliament.
Kharge said that he has given them a three-page reply, adding, "maybe they will be satisfied after reading it."
TMC MP Derek O' Brien on Thursday hit out at the government alleging censorship of the opposition protests in the Rajya Sabha during Prime Minister Narendra Modi's speech in the House.
Amid sloganeering by opposition members, Modi spoke for about 90 minutes in reply to a debate on a motion thanking the President for her address to a joint sitting of Parliament, and listed various achievements of his government.
Congress leader Jairam Ramesh sends the fifth in the series of questions to the PM linked to the Adani crisis.
Ramesh alleged that the "failure" of market regulators like the Securities and Exchange Board of India (SEBI) to protect Indian capital markets has "tarnished" their image and put a question mark on the integrity of India's financial markets.
West Bengal Chief Minister Mamata Banerjee on Thursday expressed concern over the plight of people’s deposits in banks, post offices and the LIC, claiming that the existence of such institutions might be at stake in future.
Banerjee’s comments come in the wake of the Hindenburg Research report that made a slew of allegations of wrongdoing against the business conglomerate led by industrialist Gautam Adani, in which state-owned lender SBI and Life Insurance Corporation have exposure.
"Some day, they will say wind up LIC, banks and post offices; so where will the people go?" she said, in an indirect reference to the BJP-led central government.
Adani Group is offering shipments of coal at a discount, according to people with knowledge of the matter, a sign the embattled conglomerate may be seeking to sell cargoes quickly as its liquidity position comes under increased scrutiny.
The group’s traders are offering to sell several coal shipments from Australia and Indonesia at discounts of about 4% relative to Asia’s price benchmarks, the people said, requesting anonymity to discuss private details. While Adani hasn’t spelled out its motivation for offering discounts and it’s not the only producer doing so, the move suggests the firm is eager to offload the cargoes swiftly, the people said.
DMK leader A Raja claimed on Thursday that the opposition's allegations about businessman Gautam Adani stand true as the government has not "refuted" them.
Participating in a discussion on the Union Budget for 2023-24, Raja said the claim of the government that it was the representative of 140 crore people of the country was also not true as the opposition has more than 200 MPs in Lok Sabha.
"The allegations made by the opposition were not refuted at all by the government. Since it was not refuted, it stands true," he said.
Shiv Sena leader Priyanka Chaturvedi took a jibe at Prime Minister Narendra Modi by calling him a ‘Spokesman and Salesman’ for Adani Group
Spokesman and Salesman of the year award for the Adani group goes to our one and only, Hon. Pradhan Mantri ji, Chaturvedi said in a tweet
Indian shares struggled for direction before closing marginally higher on Thursday as gains in high-weightage financials and tech stocks offset concerns over the U.S. Federal Reserve's rate-hike trajectory and a slide in Adani Group stocks.
The Nifty 50 index closed 0.12% higher at 17,893.45, while the S&P BSE Sensex ended 0.23% up at 60,806.22.
Both the indexes traded in a tight range between 0.35% gains and 0.6% losses.
Eight of the 13 major sectoral indexes logged losses, with metals falling 1.58%. Adani Enterprises, with nearly 20% weightage on the metal index, led the decline.
Norway's $1.35 trillion sovereign wealth fund said on Thursday it has in recent weeks divested virtually all its remaining shares in companies belonging to India's Adani group.
"We have monitored Adani for many years (on ESG) issues, many on their handling of environmental risks," Christopher Wright, the fund's head of ESG risk monitoring, told a news conference.
The fund had divested from five Adani companies since 2014 and at the end of 2022, it remained invested in three, including Adani Ports.
"Since year-end, we have further reduced in Adani companies. We have no exposure left," he said.
At the end of 2022, the Norwegian fund held shares in Adani Green Energy worth $52.7 million, a stake in Adani Total Gas worth $83.6 million and ownership in Adani Ports & Special Economic Zone worth $63.4 million.
Opposition is against science, technology; they are not bothered about country, but only about their politics: PM Modi.
PM said, opposition using half truths to create new narratives, spread falsehood. He also asserted, he alone is enough to take on the opposition.
If Nehru was such a great person, why the family shies away from using 'Nehru' surname: PM Modi in apparent dig at Gandhis.
Some had problems with names of schemes of govt & Sanskrit words in the names. I read in a report that 600 govt schemes were in the Gandhi-Nehru family's name...I don't understand why people from their generation don't keep Nehru as their surname, what's the fear & shame?, PM cited
PM Modi says Congress govt at Centre dismissed 90 state governments by 'misusing' Article 356 of the Constitution.
Which party & people in power misused Article 356? Elected govts were toppled 90 times, who were those who did that? A Prime minister used Article 356 50 times & that name is Indira Gandhi. In Kerala communist govt was elected which wasn't liked by Pandit Nehru & was toppled
For decades, the development of tribal communities was neglected. We gave top priority to their welfare... People of the country are repeatedly rejecting Congress. People are watching them and punishing them, PM said in the speech
Attempts being made to show in bad light Indian scientists who produced indigenous vaccine in Covid times, says PM Modi.
There was pressure from people in world to sell their vaccine in our market, articles were written, TV interviews were given. There were attempts till yesterday to insult our scientists but my country's scientists made vaccines that were approved & benefitted 150 countries, PM Modi said in Parliament
‘We do not believe in tokenism, we are working hard to take country forward through science and technology’
BJP MPs raise Modi-Modi slogan to overpower Oppositions ‘Modi-Adani’ sloganeering
As Congress demands answer on Adani, PM counters Congress party's economic, social and political policies were based on vote bank politics
As PM Modi speaks on several development issues, opposition raises slogan ‘Adani pe kuchh to bolo’, ‘Adani gulami bandh karo’, ‘Modi Adani bhai-bhai’
They (Congress) used to say ‘Gareebi Hatao’ but did nothing for over 4 decades. While we work hard to meet the expectations and aspirations of the people of the country: PM Modi in Rajya Sabha during Motion of Thanks on President's address
Congress said on Twitter, India was eagerly waiting for PM Modi's address on one of the biggest scams in the country, the Adani scam. However, as usual, our PM didn't utter a single word about his friend Adani.
I want to tell these MPs (Opposition MPs)...the more you throw 'keechad', the better the lotus will bloom: PM Modi in Rajya Sabha during Motion of Thanks on President's address
“The officials did not find any irregularities in the operations & dealings conducted by the company. We would like to clarify that the concerns specific to GST payments in cash, citing GST law under Rule 86B, company is not required to pay tax liability in cash," the company said.
"We would like to emphasise that this was a routine inspection carried out by the relevant authorities and there was no raid as previously stated or reported in the media," a Spokesperson for Adani Wilmar said.
As PM Modi starts speaking, opposition starts sloganeering 'Modi-Adani bhai-bhai'. Opposition MPs raise slogan demanding the formation of JPC on Adani issue
Opposition MPs storm the well of the House as PM Modi replies to Motion of Thanks on President's address, in Rajya Sabha. Read here
PM Modi has started his speech in Rajya Sabha as the Opposition begins sloganeering, demanding a JPC in the Adani row.
Prime Minister Narendra Modi will reply to the Motion of Thanks to the President's Address at 2 pm in Rajya Sabha on Thursday during the ongoing Budget Session of the Parliament.
"A sharp capitulation of portfolio flows, amplified by the Adani meltdown, render pre-existing rupee vulnerabilities far more acute," Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a note.
Delhi Police detained Youth Congress workers who were protesting over Adani-Hindenburg issue outside Shastri Bhawan in Delhi
Scores of All India Mahila Congress members staged a protest at Jantar Mantar on Thursday against the Centre and Adani group over allegations of financial irregularities and market manipulation. The women raised slogans and held placards demanding investigations into the matter.
In response to the MSCI statement, Hindenburg founder Nathan Anderson wrote on Twitter: "We view this as validation of our findings".
Shares of Adani Wilmar Ltd (AWL) surged more than 5% to ₹440 apiece on the BSE even when all other group stocks were trading in the red again on February 9. At 11 am, the stock was trading at ₹440.30, up 5 %on the BSE.
Adani Wilmar is a 50:50 joint venture (JV) between business conglomerate Adani Group and Singapore-based food processing company Wilmar International.
A selloff in Adani Group’s bonds has made Indian companies’ dollar notes the worst performers in Asia this year, returning a meager 1.4%, according to a Bloomberg Index.
MSCI calculates free float-adjusted market-capitalization for each security. Free float-adjusted market-capitalization (m-cap) technically is a method to calculate m-cap of shares that are readily available in the market. It is calculated by multiplying an equity's share price to number of shares available in the market.
Read more: MSCI reviews Adani stocks: What is free-float status in shares?
Verbal skirmishes and frequent interventions by the Chair marked Rajya Sabha proceedings on Wednesday as Opposition parties continued to clamour for a JPC probe into the Adani-Hindenburg row.
Leader of Opposition Mallikarjun Kharge led the charge, asking the government why it was "shying away" from an investigation.
Prime Minister Narendra Modi will reply to the debate at 2 pm on Thursday.
“PM didn't answer our question on Adani issue yesterday. Modi ji always speaks diverting from the real issue. We raised questions on how Adani become a millionaire and how such lefty loans were given to him, but none were answered," asserted Congress chief and Leader of Opposition Mallikarjun Kharge.
The Supreme Court has agreed to hear a plea seeking court-monitored probe into Hindenburg Research report on Adani firms. The case will be heard on Friday.
“Yesterday the country was expecting an answer from the PM on the Adani issue. Why are they afraid of the truth. If govt doesn't want to hide anything then why they are running away from JPC... We are expecting an answer from PM in Rajya Sabha today," he said.
He also criticised the expunging of Rahul Gandhi's comment, insisting that there was “not even a single word that is unparliamentary".
“We are writing to Speaker in Lok Sabha. How can it be removed? Rahul Gandhi asked a question that how many times did the PM travel with Adani during his foreign trips? What is the use of removing it?" he asked.
The Parwanoo South Zone Enforcement wing of Himachal Excise and Taxation Department inspected stocks of Adani Wilmar Ltd at Parwanoo late Wednesday evening. Officials however told news agency PTI that it was a routine inspection of stock.
Nine of the group’s 10 stocks declined Thursday, with flagship Adani Enterprises Ltd. plunging as much as 20% before paring the bulk of its losses. That follows a 35% jump over the previous two sessions.
The group’s market value has fallen sharply over the past two weeks after US-based Hindenburg published a critical report on January 24. At one point the losses had reached $117 billion.
Shares of Adani Power fell 5% to 172.90 apiece on BSE in early deals, after the company on Wednesday reported a 96% decline in consolidated net profit at ₹8.77 crore for the December quarter.
Edible oil major Adani Wilmar Ltd edged lower by 1.79% to 411.85 per scrip, despite the company reporting a 16% increase in its consolidated profit to ₹246.16 crore for the third quarter ended December 2022.
Adani Group's flagship Adani Enterprises was trading 5.56% down at ₹2038.55 apiece on BSE.
According to the RBI, domestic banks' exposure to the Adani Group is "not very significant", and the system is strong and large enough to not get impacted by a single case.
France's Total Energies has put their participation in Adani Groups $50 billion Green Hydrogen project on hold pending results of an audit. This is one of the Adani Group's first large plans to be put on hold post the Hindenburg report and growing pressure for a clarification from foreign partners.
Two stocks have been put under the ban for trade on Thursday under the futures and options (F&O) segment by the National Stock Exchange (NSE). The securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit, as per the NSE. Cement maker Ambuja Cements continues to be a part of the ban list, whereas Indiabulls Housing Finance has been added to the F&O ban by the stock exchange for today.
Read more: Ambuja Cements, Indiabulls Housing Finance stocks under F&O ban for trade on NSE today
After their respective earnings for the third quarter ended December 2022 (Q3 FY23), global brokerage Jefferies has recommended Buy ratings on two Adani Group stocks - Adani Ports and Special Economic Zone (APSEZ) and Ambuja Cements.
Read more: 2 Adani Group stocks to buy as Jefferies bullish post Q3 results
MSCI said it will implement and announce any resultant changes affecting calculations of the so-called free float and market capitalization of the Adani group stocks when releasing its February index review scheduled Thursday.
Congress MP Manickam Tagore gives Adjournment Motion notice in Lok Sabha to discuss "the details of PM's foreign travels with Gautam Adani and the consequent benefits received by the Adani Groups in respect of getting foreign tenders."
Elara Capital, a London-based company reported to have connections to Adani Group, and the Indian conglomerate itself are being watched by the Financial Conduct Authority in the UK. Although the allegations mostly centre around group firms outside of the UK, the FCA is looking into potential UK connections around Elara.
Read more: Adani’s London connection under scrutiny as UK watchdog launches probe: Report
France's TotalEnergies has put on hold a planned investment in Adani Group's USD 50 billion hydrogen project pending results of an audit launched following the Hindenburg allegations. The partnership will see the French oil giant take a 25% stake in the hydrogen venture of the Adani group. While the announcement was made in June last year, TotalEnergies has not yet signed a contract.
Read more: Stocks to Watch: Adani Total, Airtel, Adani Power, L&T, Tata Steel
The profit of Adani Power fell 96% to ₹9 crore during the third quarter (October to December 2022) of FY23. The company was affected by a sharp spike in fuel costs . Meanwhile, Adani Wilmar's net income rose 16% to ₹246 crore during this period.
According to reports, profit would have been far higher if not for the ₹47 crore loss incurred by its Bangladesh arm. Adani Wilmar is a joint venture between the embattled group and Singapore's Wilmar International. As the Hindenburg controversy rages on, Wilmar has asserted that it would continue to back the JV.
"MSCI has received feedback from a range of market participants concerning the eligibility and free float determination of specific securities associated with the Adani Group for the MSCI Global Investable Market Indexes (GIMI)," it said in a statement.
MSCI said the Adani review would be carried out as part of its regular February review. The results of that were due to be published later Thursday. The index provider said in late January it was seeking feedback from market participants as the sell-off crisis engulfed Adani.
Hedge funds that previously stayed clear of stocks and bonds linked to Gautam Adani’s empire are jumping in after a more than $100 billion wipeout in the group’s market value.
According to a Bloomberg report citing hedge fund managers, traders and investors, battered down bond prices and heightened price swings on many Adani securities have drawn in new investors.
Some said the strong assets and cash flows of Adani ports, power and green energy companies would ensure debt is serviced and that investors would be shielded from any losses resulting from any future defaults. Meantime, others are looking at potential opportunities to arbitrage secured against unsecured debt, or between debt and equities
"With the expunging of Rahul Gandhi's remarks on PM linked Adani Maha Mega Scam, deMOcracy was cremated in the Lok Sabha. OM Shanti," the Congress general secretary tweeted.
"You can expunge,but you can’t exterminate! Jagadguru of Jhoot stands exposed," he added.
In his remarks in Lok Sabha, Gandhi had alleged that the meteoric rise in Gautam Adani's fortunes happened after the BJP came to power in 2014 and he rose from the 609th to the second spot in the global rich list. The Congress leader's remarks had drawn a sharp response from the treasury benches, with Law Minister Kiren Rijiju asking him not to level "wild allegations" and to furnish proof of his claims.
Finland’s minister for foreign trade Ville Skinnari on Wednesday emphasised the need for trust and transparency while fielding a question on the Adani group at a press interaction. He was, however, optimistic about investments opportunities in the Indian “in the long run."
“In Finland, we always emphasize transparency. Everything is open and can be monitored and analyzed. This brings us back to the question of trust. The market is looking for trust. Where there is trust, there is money and investments," the visiting European minister said.
Read more: Markets want trust and transparency, says Finnish minister on Adani
Prime Minister Narendra Modi will reply to the Motion of Thanks to the President's Address at 2 pm in Rajya Sabha on Thursday during the ongoing Budget Session of the Parliament.
Earlier on Wednesday, Modi replied to the motion of thanks in Lok Sabha, taking veiled digs at Rahul Gandhi. The Congress leader had made a sharp attack on the government over the Adani issue in his speech during the debate on Tuesday. Some speeches made on Tuesday, PM Modi remarked, were lauded by their ecosystem.
"I was watching yesterday. After the speeches of a few people, some people were happily saying, "Ye hui na baat." Maybe they slept well and couldn't wake up (on time). For them it has been said, "Ye keh keh ke hum dil ko behla rahe hain,wo ab chal chuke hain, wo ab aa rahe hain"," PM Modi said.
ESG ratings firm Sustainalytics downgraded corporate governance-related scores for three of India's Adani Group companies on ethics concerns. The changes flow to the overall risk rating tied to environmental, social and governance (ESG) matters assigned by Sustainalytics to Adani companies, which can influence whether sustainability-minded fund managers buy or hold the securities.
Company officials said that the changes - including for Adani Green Energy and Adani Transmission - would not have a major impact on the overall risk scores. Sustainalytics will continue to monitor the situation amid further reviews of Adani by regulators and investors.
Index provider MSCI said on Thursday it has received feedback from a range of market participants concerning specific securities associated with the Adani Group.
"MSCI has determined that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float pursuant to our methodology," it said in a statement.
The index provider received feedback concerning eligibility, free float determination of specific securities associated with Adani Group for the MSCI Global Investable Market Indexes.
The Adani Group plans to prepay a $500 million bridge loan due next month after some banks balked at refinancing the debt following a short seller attack that sent the group’s assets tumbling, according to Bloomberg.
TMC MP Mahua Moitra took to microblogging site Twitter later in the night to point out that while Adani Power's Q3 profit dropped 96%, their stocks wear still high. ‘Maybe Sebi wearing topi’ she said.
'Adani Power profit drops 96% but stock hits upper circuit. Maybe @SEBI_India wearing topi!"
Gautam Adani faced a margin call of more than $500mn on a $1.1bn share-backed loan, prompting the Indian tycoon to repay the whole debt, FT reported on Wednesday.
Shares of most of the Adani Group companies ended higher on Wednesday, with the flagship company Adani Enterprises rallying nearly 20 per cent. Seven of the group companies ended in the positive territory while three settled in the red on Wednesday.
The opposition hit out at Prime Minister Narendra Modi on Wednesday for not responding to allegations related to industrialist Gautam Adani, which they termed "the elephant in the room", with former Congress chief Rahul Gandhi accusing Modi of "protecting" the billionaire.
Rajya Sabha Congress MP KC Venugopal today alleged that the government was "running away" from an investigation by a Joint Parliamentary Committee (JPC) on the allegations against the Adani Group as it wanted to "hide something".
France's TotalEnergies has put on hold a planned investment in Adani Group's USD 50 billion hydrogen project pending results of an audit launched following allegations by a US short-seller, chief executive Patrick Pouyanné said on Wednesday. Read here
Rahul Gandhi questions Prime Minister Modi's silence over Adani row asks why didn't he promise a probe against benami companies. ‘It is clearly Prime Minister is protecting them’
PM Narendra Modi avoided mention of the Adani-Hindenburg row in his speech but maintained the speech primarily on the alleged failures and scams during the UPA government’s rule before 2014.
Addressing the Lok Sabha, PM Modi said that the image “Modi" was not born out of headlines but from the fact that he has given his life and every moment to the people of this country… “for the glorious future of the country."
Attacking the Congress and the Opposition, PM Modi said those who are drunk with arrogance think a way will come out only by abusing him. “It’s been 22 years, they still have a misapprehension," PM Modi said.
People's trust in Modi is not due to newspaper headlines or TV visuals but due to my years of dedication. Some people only live for their families but Narendra Modi is a member of 25 crore families of this country. The 140-crore people of this country are my shield, no one can break this: PM Modi in Lok Sabha