The market had been hindered by last week’s frantic selling of Adani equities. The group’s seven listed equities, which are owned by billionaire Gautam Adani, experienced a particularly bad day on Friday, January 27, when they were hammered to the point where some of them fell to their lower circuits while others plummeted into double-digit declines. There were a lot of losses. In addition, the 20,000 crore follow-on public offer (FPO) felt the pressure of the accumulated selloff. Everything as a result of a study report by a US-based company alleging Adani of stock manipulation and fraud activities. Some of the major issues affecting Adani’s listed equities on market bourses in the coming week include its FPO and its measures against Hindenburg.
The majority of Adani Group equities touched its lower circuit on Friday last week, which means that there were many selling but no buyers.
On January 27, three Adani stocks—Adani Transmission, Adani Green Energy, and Adani Total Gas—each closed 20% lower. Adani Power and Adani Wilmar both suffered setbacks and were ultimately trapped at 5% lower circuits apiece. Additionally, Adani Ports struggled and lost more than 16% of its value by day’s end.
Adani Enterprises, the parent company of Adani, which released its FPO on Friday, saw a decline of at least 20% before ending at Rs 2,762.15 per share on BSE.
Gautam Adani’s net worth was severely damaged by the carnage in the Adani stock market. As of January 29, the richest individual in Asia has a net worth of $92.7 billion, placing him fifth on the Bloomberg Billionaire Index.
The index shows that Adani’s net worth has most recently decreased by $20.8 billion. Adani’s wealth has decreased $27.9 billion so far this year.
Not only that, but the decline in Adani stock also hurt the performance of the whole market.
The banking industry was under the most pressure as a result of the devastation in the Adani group equities, according to Ajit Mishra, VP of Technical Research at Religare Broking. Due to conflicting global cues and prudence in advance of the Union Budget, participants were already encountering difficulties, and this breakdown has only made matters worse.
The stocks of Adani Wilmar and Adani Total Gas have declined by about 7% apiece throughout the week of January 23–27. The weekly decline for Adani Power is about 10%. Shares of Adani Enterprises have fallen by over 20% this week. Adani Green Energy and Adani Ports equity shares have fallen by almost 25% and 23%, respectively, on Dalal Street, while Adani Transmission stock has dropped by about 27% in the past week.