Wednesday, June 7, 2023
HomeBusinessLost 10 billion dollars last week, Adani may suffer more loss

Lost 10 billion dollars last week, Adani may suffer more loss

year 2023 The fifth month is on the verge of ending, but the bad days for Adani Group are not taking the name of ending. After the setback caused by the Hindenburg Report at the beginning of the year, the group is not getting a chance to recover. Last week too, heavy selling was seen in the shares of Adani Group, due to which Adani’s companies had to bear huge losses in terms of market cap (Adani MCap).

worst week in 3 months

Adani group companies lost more than $10 billion in mcap during the week ended May 19. However, even after this, the difficulties have not ended for the Adani group. After the worst week since February 2023, now the Adani group is at risk of further losses. Due to this, they may have to face more selling in the coming days.

mcap has reduced so much now

According to a Bloomberg report, investors can withdraw several million dollars from Adani Group’s shares. In fact, Adani Total Gas and Adani Transmission, two stocks of Adani Group, have been dropped from Morgan Stanley Capital International i.e. MSCI Index this month. This is the reason that during the last week, the mcap of Adani group came down by about $ 10.1 billion to $ 107 billion.

may be so sold

Equity analyst Brian Freitas says that the Adani group may still face more selling. In fact, after the Hindenburg report, the value of Adani group companies has reduced considerably. Some stocks have shown recovery, but still they are in big losses. Now that the two stocks have been taken out of the MSCI index, global passive funds can sell Adani shares worth around $390 million.

Hindenburg did so much damage

Hindenburg’s report came out on 24 January. After that, there was a huge decline of more than $ 150 billion in the value of Adani group companies during about a month. Some recovery was seen during the subsequent two months, when GQG Partners made large investments in Adani’s shares, but this recovery proved to be insufficient. Even before the group’s shares could recover completely, a new round of selling has started.

There are still many legal hurdles in front

The Adani group is also facing challenges on the domestic front. Markets regulator SEBI (SEBI Adani Probe) is probing the allegations made by Hindenburg Research on the Adani group, which is being monitored by a panel constituted by the Supreme Court. The Supreme Court has asked SEBI to complete the investigation within 3 months. On the other hand, several opposition parties, including the Congress, are demanding a JPC inquiry into the alleged irregularities of the Adani group.


Motorola Razr 40 series will be launched in India with many powerful features, company gave information

Motorola Razr 40 series will be launched in India with many...

Motorola has officially announced the launch of the Razr 40 series in India. Razr 40 and Razr 40 Ultra smartphones will be launched under...
- Advertisment -


Two Wheeler

Digit News