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Mutual funds (MFs) have incurred a loss of ₹6,192 crore in the embattled Adani Group stocks last month even as both the active and passive funds trimmed their exposure to these scrips.
Overall, the value of MF investment in Adani Group stocks plunged 25 per cent last month to ₹18,995 crore as against ₹25,187 crore logged in December 2022, according to data sourced from Fisdom Research – a wealthtech platform.
Fund-house wise exposure
SBI Mutual Fund, which had the highest exposure to Gautam Adani-controlled companies, and Nippon India MF saw their investment fall 26 per cent each to ₹4,124 crore (₹5,600 crore) and ₹1,533 crore (₹2,071 crore).
Kotak MF and ICICI Pru MF investments reduced 24 per cent and 16 per cent to ₹1,779 crore (₹2,329 crore) and ₹1,735 crore (₹2,065 crore), respectively.
UTI MF and Quant MF witnessed their investments dip to ₹1,453 crore (₹1,938 crore) and ₹947 crore (₹1,276 crore), while that of HDFC MF and Tata MF were down at ₹1,327 crore (1,590 crore) and ₹1,193 crore (₹1,401 crore).
Different strategies
Most actively-managed equity funds have reduced exposure to companies hit by short seller Hindenburg Research report by 4-0.3 percentage points due to fall in valuation. Similarly, passive funds have trimmed their exposure by 0.12 to 3.92 percentage points.
Interestingly, few fund houses like ICICI MF, Tata MF, Aditya Birla MF, Nippon MF and Franklin Templeton India have taken fresh position in Adani Group companies through their long-term retirement schemes and high-risk funds to take advantage of the valuation after the steep fall in stock prices especially in companies with a strong manufacturing base and domestic-market focused businesses.
Nirav Karkera, Head of Research, Fisdom, said most of the AMCs are maintaining their position in the Adani Group stocks, while a mark-to-market reflects the drop in valuation across scheme portfolios.
There seems to be a distinct trend where there are more AMCs buying the dip against lesser schemes booking losses on the holdings. However, most MFs are expected to review the developments and make definitive investment decisions once further clarity emerges, he added.
Adani Group stocks
The 10 Adani Group stocks have lost 53 per cent in value since the Hindenburg Research report was released in January. The combined market capitalisation of these 10 stocks have dropped to ₹8.99-lakh crore as of Monday from ₹19.21-lakh crore on January 24.
The 10 Adani Group companies include Adani Enterprises, Adani Green Energy, Adani Ports, Adani Power, Adani Total Gas, Adani Transmission, Adani Wilmar, Ambuja Cement, ACC and NDTV.
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