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Adani Group Stocks Surge After $113 Billion Market Wipeout
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1 year agoon
Adani Group: Activists from India’s main opposition Congress party shout slogans as they cling to the gate of the Life Insurance Corporation (LIC) office in New Delhi, India, on February 7, 2023, in protest of what they say are investments by the LIC and State Bank of India (SBI) in the Adani Group. AP Photo/Adnan Abid
(Reuters) – BENGALURU, Feb 7 (Reuters) – Shares in India’s Adani Group rose on Tuesday, a day after the conglomerate repaid some loans, providing relief to investors who have seen $113.6 billion wiped off the conglomerate’s market value since a critical report published by a U.S. short-seller two weeks ago.The group, led by billionaire Gautam Adani, has been rocked by days of market turmoil since Hindenburg Research accused it of stock manipulation and using tax havens on Jan. 24. It also stated that the group’s debt was unsustainable.
Adani Group has denied the allegations, claiming that it follows all laws and has made all required disclosures over time. Nonetheless, as fears of financial contagion grew, investors dumped its stock.Moody’s has warned that the group’s ability to raise capital may be jeopardised, and India’s central bank has begun investigating lenders’ exposure to it.
The market rout also forced Adani to postpone a key $2.5 billion share sale last week, a major setback for the billionaire.
Latest Updates
India’s Adani Ports reports a drop in third-quarter profit and plans to cut capex and repay debt next year. Indian banks’ exposure to the Adani group is “insufficient” to pose a credit risk, according to Fitch.
Russia’s Sechin claims that Europe no longer determines the price of Urals.However, Adani Group announced on Monday that it will prepay $1.11 billion in loans on shares. Separately, JPMorgan said on Tuesday that the group companies could still be included in the bank’s bond indexes.
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According to Anita Gandhi, director at Arihant Capital Markets, these two factors have aided in the rise of stock prices. “Also helping the rise is the sharp correction in group stocks, which has made them appealing,” she added.
What are the Adani group of companies?
Which Adani Group is best?
Adani Enterprises.
Adani Green Energy.
Adani Ports & SEZ.
Adani Power.
Adani Total Gas.
Adani Transmission.
Adani Wilmar.
What is the new share price of Adani?
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