Adani Stock Wipeout Deepens to $104 Billion After Flagship Firm Pulls Share Sale

[kaykay]

U-turn! Adani group stocks rally up to 20% to hit upper circuits. Here's why

Today's recovery in stock prices came after Adani Group promoters have prepaid $1.1 billion loans ahead of its maturity of Sep 2024 in three key companies — Adani Green Energy, Adani Ports, and Adani Transmission.

m.economictimes.com

 

[Indos]

View attachment 915345

Time to search or make some other straws to clutch on to...

Low volume trading is easy to be manipulated by insider trading, with Adani record I believe all of foreign investors will be cautious with Adani stock movement. More over Indian stock authority doesnt even make investigation on Adani stock

As what I have predicted since last week in my previous thread, this event will pressure Indian Rupee

View attachment 914630
View attachment 914631

Sell-off in India's Adani deepens to $50 billion

Dont just see on Adani, what would happen on Indian stock market for the next week as confident on Indian stock market will likely plunge over this issue. The possible huge outflow of foreign investors in Indian Stock market will likely hurt Rupee as well for the next weeks to come If they...

defence.pk

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INDIA RUPEE-Rupee weakens past 82/USD hit by equity market turbulence​

MUMBAI, Feb 2 (Reuters) - The Indian rupee closed at a more than three-week low on Thursday, shrugging off weakness in the dollar index, as concerns over a rout in local equities seeped into the currency markets.

The partially convertible rupee INR=IN fell to 82.1725 per dollar, compared with its previous close of 81.92.

The currency had briefly flirted with 82-levels in the past two sessions but was unable to sustain its post-budget gains on Wednesday, mirroring the volatility in equities.

The mood on Thursday was dominated by turbulence in the equities as the selloff Adani Group shares persisted, dragging the benchmark stock index down after the conglomerate shelved its fully-subscribed secondary share offering overnight.

The rupee's marginal strength earlier in the session was not going to last as heavy dollar buying was expected, three traders said.

Foreign banks have been bidding all through this week for USD/INR, they said, pointing to the chances of custodial banks among them as overseas investors sought to withdraw money from Indian markets.

Foreign institutional investors have withdrawn around $3.5 billion from stock markets in January alone.

The rupee, which has already been underperforming its Asian peers, will likely stay under pressure from these developments, said Alvin Tan, head of Asia FX strategy, RBC Capital Markets.

Meanwhile, Asian currencies and stocks nudged up as Fed Chair Jerome Powell acknowledged that U.S. inflation had started to cool after the central bank raised rates by an expected 25 basis points.

However, he did signal that interest rates would rise further and that cuts were not in the offing, but markets continued to cheer the likelihood of the Fed rate peaking soon, with the dollar index USD= plunging more than 1% overnight.

nvestors will now be on the lookout for the central bank meetings in Europe an England later in the day, when both are expected to hike rates by 50 bps.

(Reporting by Anushka Trivedi;Editing by Dhanya Ann Thoppil)

https://www.nasdaq.com/articles/india-rupee-rupee-weakens-past-82-usd-hit-by-equity-market-turbulence

RBI MPC Meet 2023 LIVE Updates: Home Loans to Get Costlier as Repo Rate Hiked by 25bps to 6.5%​

RBI MPC LIVE: The Reserve Bank of India monetary policy committee (MPC) announced its latest bi-monthly monetary and credit policy on Wednesday, 8 February, concluding a 3-day meeting. The Reserve Bank of India on Wednesday announced repo rate increase by 25 basis points to 6.5 %. The decision was announced by RBI Governor Shaktikanta Das. MPC decision was by 4 out of 6 majority.

Amid volatile global developments, Indian economy remains resilient, Das said.

The decision of the six-member rate setting panel was announced by the Governor on Read More

RBI MPC Meet 2023 LIVE Updates: RBI Hikes Repo Rate by 25 bps, Launches UPI for Tourists From G-20 Countries - News18

RBI MPC Meeting 2023 Live Updates: RBI Monetary Policy 2023, Shaktikanta Das Growth EMI, Home Loan Rates RBI MPC Highlights, What happened in December MPC?

www.news18.com

 

[Fireurimagination]

Low volume trading is easy to be manipulated by insider trading, with Adani record I believe all of foreign investors will be cautious with Adani stock movement. More over Indian stock authority doesnt even make investigation on Adani stock

Low volume trading? Adani share have been in the top-tier of most traded stocks in the past week. People are lapping up cheap shares hoping to make a quick profit. Others are waiting for quarterly results and earning data, if they are +ve expect a zoom of 20% minimum.

 

[kingQamaR]

Low volume trading? Adani share have been in the top-tier of most traded stocks in the past week. People are lapping up cheap shares hoping to make a quick profit. Others are waiting for quarterly results and earning data, if they are +ve expect a zoom of 20% minimum.

His scam , has been uncovered now. Hence people will be cautious of him. This in turn will effect his business

 

[kaykay]

From loser to top winner: Adani's net worth soars as stocks bounce back

Gautam Adani again began climbing up on the world’s billionaire list as his net worth soared following the rise in his companies’ stocks.

www.siasat.com

 

[Paji]

what crap. Adani forcibly acquired airports like GVk mumbai from businessman who actually built them. Most of adani ports or airports were actually built by other businessmen who were sidelined by Modi administration and given to Adani.

The assets were acquired but not forcibly. The Mumbai airport was acquired at the height of the pandemic shutdown when the airport itself had been shut down with zero revenue. GvK was trying to raise funds to pay off debt and other investors, including foreign ones, were balking. Adani stepped in and completed the deal in a month and GVK got the funds to pay off their loans. Adani also bought out aSouth African state company from the Mumbai airport on similar commercial terms. Divestitures and acquisitions are part of the normal course of business. The GVK group and the other foreign investor didn't just hand over their stakes for free. Incidentally, GVK had also sold off their interest in the Bangalore airport to a Canadian company a few years earlier. Surely you will not suggest that was forced too ?

It is true that Adani has made some big acquisitions but that is mainly because he has a knack for identifying opportunities and taking bold risks that no one else is willing to take. Sometimes those risks also backfire, as was seen in the recent stock meltdown ( though there has been a substantial recovery in the last couple of days). He has known Modi for a long time and likely donates to the BJP, but he has also done well under Congress governments.

I won't dispute that the valuation of Adani group companies was very high for the kind of business they operate, but financial bubbles occur all over the world and are most often caused by irrationality rather than fraud.

 

[letsrock]

The assets were acquired but not forcibly. The Mumbai airport was acquired at the height of the pandemic shutdown when the airport itself had been shut down with zero revenue. GvK was trying to raise funds to pay off debt and other investors, including foreign ones, were balking. Adani stepped in and completed the deal in a month and GVK got the funds to pay off their loans. Adani also bought out aSouth African state company from the Mumbai airport on similar commercial terms. Divestitures and acquisitions are part of the normal course of business. The GVK group and the other foreign investor didn't just hand over their stakes for free. Incidentally, GVK had also sold off their interest in the Bangalore airport to a Canadian company a few years earlier. Surely you will not suggest that was forced too ?

It is true that Adani has made some big acquisitions but that is mainly because he has a knack for identifying opportunities and taking bold risks that no one else is willing to take. Sometimes those risks also backfire, as was seen in the recent stock meltdown ( though there has been a substantial recovery in the last couple of days). He has known Modi for a long time and likely donates to the BJP, but he has also done well under Congress governments.

I won't dispute that the valuation of Adani group companies was very high for the kind of business they operate, but financial bubbles occur all over the world and are most often caused by irrationality rather than fraud.

@RandyB why is your CBI registering cases on real first gen businessmen who actually built these airports or ports but giving everything on a platter to fraud accused Adani ?

 

[letsrock]

Low volume trading? Adani share have been in the top-tier of most traded stocks in the past week. People are lapping up cheap shares hoping to make a quick profit. Others are waiting for quarterly results and earning data, if they are +ve expect a zoom of 20% minimum.

Adani is backed by public owned institutions like SBI, LIC etc. He will be fine. but is this correct ?

I am sure in 1.4 billion indians there are other businnessmen too who deserve this much support. So why such rank favoritism ? Is india not better off when public money is available based on a criteria instead of being favored by PM ?

 

[Paji]

@RandyB why is your CBI registering cases on real first gen businessmen who actually built these airports or ports but giving everything on a platter to fraud accused Adani ?

Firstly, only one of the cases in your graphic is a CBI case. There is a big difference between CCI and CBI.

There were allegations of siphoning off funds against GVK group which is why CBI and ED investigated them. The CBI is now prosecuting this case in court. If there had really been a quid pro quo the cases would have been dropped by now.

CCI is the Competition Commission of India and almost all cement companies, not just ACC and Ambuja, in that regional market were raided for suspected cartelisation, which is illegal in almost all countries. I know from my personal interactions with senior cement industry executives several years ago that this is quite a common practice, especially when the industry is over-supplied ( it is a highly cyclical industry since capacity can only be added or suntracted in big chunks) . They euphmemistically call it " co-operation". In any case those companies were not owned by some first gen entrepreneur but by Holcim Cement, which is a European company and has been exiting all its international businesses outside Europe and North America to cut its carbon footprint. I hope you don't seriously believe one of the biggest multinationals in the world based in France/Switzerland got shaken down by Adani and kept quiet about it.

Is india not better off when public money is available based on a criteria instead of being favored by PM ?

He is not a relative of Modi. Have you considered the possibility that you have got the cause and effect wrong ? Maybe he is favoured by Modi because he is successful not the other way round. Modi is the antithesis of nepotism. The reason fingers are pointed at Adani is because no one can find anything related to corruption to pin on Modi, his family or his cabinet personally. If Modi has not given a single favour to his blood relatives , why will he go out of his way for Adani ?

 

[Indos]

Adani's debts exceed 1% of Indian economy​

Troubled conglomerate's woes deepen after share sale cancellation

Indian billionaire Gautam Adani says the Adani Group's balance sheet is healthy, despite the stock market turmoils. © Reuters

RYOSUKE HANADA, Nikkei staff writer
February 9, 2023 04:07 JST

MUMBAI -- Debts owed by Adani Group are equivalent to at least 1% of the Indian economy, a Nikkei analysis shows, underscoring the scale of the conglomerate's financial troubles amid accounting fraud allegations.

The liabilities attributed to 10 of Adani's listed group companies add up to 3.39 trillion rupees ($41.1 billion), according to a Nikkei calculation using data from QUICK FactSet. The companies include ACC, Ambuja Cements and New Delhi Television, three companies Adani purchased last year.

Adani's debts exceed 1% of Indian economy

Troubled conglomerate's woes deepen after share sale cancellation

asia.nikkei.com

 

[datafreak]

Adani's debts exceed 1% of Indian economy​

Troubled conglomerate's woes deepen after share sale cancellation

Indian billionaire Gautam Adani says the Adani Group's balance sheet is healthy, despite the stock market turmoils. © Reuters

RYOSUKE HANADA, Nikkei staff writer
February 9, 2023 04:07 JST

MUMBAI -- Debts owed by Adani Group are equivalent to at least 1% of the Indian economy, a Nikkei analysis shows, underscoring the scale of the conglomerate's financial troubles amid accounting fraud allegations.

The liabilities attributed to 10 of Adani's listed group companies add up to 3.39 trillion rupees ($41.1 billion), according to a Nikkei calculation using data from QUICK FactSet. The companies include ACC, Ambuja Cements and New Delhi Television, three companies Adani purchased last year.

Adani's debts exceed 1% of Indian economy

Troubled conglomerate's woes deepen after share sale cancellation

asia.nikkei.com

If you're hoping Adani will crash specatacularly and the Indian economy will go down with it, you are dreaming.


Even if Adani entirely crashes and is fully destroyed, not one thing will happen to India's continued growth.

 

[Indos]

If you're hoping Adani will crash specatacularly and the Indian economy will go down with it, you are dreaming.


Even if Adani entirely crashes and is fully destroyed, not one thing will happen to India's continued growth.

Dont be too emotional, regarding to Indian economy I have already made my fair judgement. You can look at this thread. This story is interesting for me as having interest on economy beside others on defense. If I make a thread, usually it will be floaded by data. I am here using this platform is also to store many data that interest me

The real figure of Adani debt is of course is very important to make this thread valuable to read and store in this site

 

[Paji]

The liabilities attributed to 10 of Adani's listed group companies add up to 3.39 trillion rupees ($41.1 billion), according to a Nikkei calculation using data from QUICK FactSet.

It is important to remember that less than 30% of this debt is owed to Indian banks, who will be the first to enforce security in case of a hypothetical default. In the unlikely event of liquidation, the bulk of the losses will be borne by foreign private banks.

 

[kingQamaR]

If you're hoping Adani will crash specatacularly and the Indian economy will go down with it, you are dreaming.


Even if Adani entirely crashes and is fully destroyed, not one thing will happen to India's continued growth.

I believe , no business in any country can grow ambitious unless the economic goals of the country are equally ambitious. In order to achieve the national economic growth , it’s always the biggest business houses that plays the major role. It’s like saying , Germanys BMW, Volkswagen would have zero impact if they were to implode like this guys bubble burst

 

[datafreak]

I believe , no business in any country can grow ambitious unless the economic goals of the country are equally ambitious. In order to achieve the national economic growth , it’s always the biggest business houses that plays the major role. It’s like saying , Germanys BMW, Volkswagen would have zero impact if they were to implode like this guys bubble burst

Crony capitalism is a net negavtive and Cheabolization is pretty bad, especially for a country as big as India. But the good thing about this episode is that the cure is firmly presenting itself- Short Selling. It is a very important part of a mature economy, people bringing down such malpractices by betting against them. Right now short selling is being done by a US based company but hopefully this example will force many more Indians to open short selling companies in India itself.

2023 is actually proving itself to be a great year for Indian finance. Short selling is playing it's role. MCX is aggressively promoting the use of futures and options in commodities. All these are tools that will make Indian finance sophisticated and strong in the future. Adani is just one company. It is the system that counts. Looks like all these things will leave the system stronger than before.