Adani Group’s Three Companies Record ₹ 80,000 Crore Loss in Three Days

Shares of NDTV, Adani Power, and Adani Wilmar recorded a huge fall in the past three days, resulting in a staggering loss of ₹ 80,000 crores for three companies of the Adani Group.

The Adani Group, which is led by billionaire Gautam Adani, has been one of the fastest-growing conglomerates in India in recent years, with a presence in a diverse range of sectors, including energy, infrastructure, logistics, and mining.

However, the recent downturn in the market has dealt a severe blow to the group’s market capitalization, raising concerns about its financial stability.

All 10 Adani Group stocks were trading lower on Tuesday with four of them, Adani Power, Adani Transmission, Adani Green, and Adani Total Gas, locked in the 5% lower circuit limits. Shares of the conglomerate’s flagship entity Adani Enterprises were the worst performer as they lost up to 7.8% to hit the day’s low at Rs 1,588.80.

The Adani Group witnessed a sharp decline in the share prices of its companies, resulting in a massive loss of market capitalization. Adani Power, Adani Wilmar, and NDTV were the hardest hit, with their shares plummeting to all-time lows.

The overall market sentiment towards the Adani Group has been negative, with investors losing confidence in the company’s growth prospects. The Adani Group has a significant debt obligation, and the loss of market capitalization has raised concerns about its financial stability.

The recent sell-off in the Adani Group companies was triggered by reports of a crackdown by Indian regulators on foreign portfolio investors, which impacted the group’s share prices. The group’s businesses, including ports, power, and edible oil, have also been impacted by the ongoing COVID-19 pandemic.

The loss of market capitalization has raised concerns about the financial stability of the Adani Group, which has significant debt obligations. The group’s management has, however, downplayed the concerns, stating that the company is financially sound and that the current situation is a temporary blip.

Experts predict that the Adani Group’s fortunes will improve in the coming months, as the Indian economy rebounds from the pandemic-induced slowdown. However, the recent sell-off in the group’s shares has highlighted the need for the company to diversify its businesses and reduce its dependence on a few key sectors.