Panic selling shaves off ₹1.13-lakh crore of Adani group’s m-cap

Ten Adani group stocks shaved off ₹1.13-lakh crore of investors’ wealth, driven by panic-selling on concerns over the group making the highest contribution to political parties through electoral bonds.

The drag down got further accentuated over bearish sentiment in the market after SEBI expressed serious concern over leveraged stock position by a few traders driving up the stock prices and froth in the small- and mid-cap space.

Adani Total Gas and Adani Green Energy fell the most, by 10 per cent each, to ₹874 and ₹1,727 while Adani Energy Solution and NDTV were down 9 per cent and 8 per cent respectively at ₹948 and ₹211. Other group companies were down 5 per cent 7 per cent.

The market capitalisation of these 10 companies were down 7 per cent at ₹14.72-lakh crore against ₹15.85-lakh crore on Tuesday.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart, said the Adani group stocks were caught in the rumours going round in the market that they are one of the leading contributor to political parties through the purchase of electoral bonds.

This apart, he said the all-round panic-selling in the market further dragged down the group’s stocks which had rallied in the last few months.

The stock prices were further beaten down by sudden downtrend in the market on concern over simmering border tension between India and China besides Russia sending a strong signal to the West on readying for a nuclear war, said an analyst of a leading broking firm.

SEBI concern

Besides raising concerns over-leveraged stock position, SEBI last week barred JM Financial from acting as the lead manager for any new public issue of debt securities due to alleged fraudulent practices.

In an ex-parte interim order, SEBI alleged that JM Financial incentivised certain investors to apply in the public issue and carried out transactions in a predetermined manner to ensure subscription and success.

SEBI’s action comes few days after the RBI barred the company’s unit from extending loans against shares and bonds after an inspection revealed serious deficiencies in loans sanctioned for the financing of initial public offerings and bond issuances.

The frequent strong signals being sent by SEBI has made many lenders against the shares to tighten their belt and asked borrowers to pay back after cutting down their leveraged positions, an analyst said.

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