Domestic markets steady; Adani Group firms lose USD 100 bn
Feb 02, 2023
Mumbai (Maharashtra) [India], February 2 : The domestic markets were volatile in the beginning and settled with gains on Thursday. The morning session of the day was somewhat volatile while stocks were steady in the afternoon. The strong market sentiments in the US and Europe also influenced markets in Asia, namely China and Japan.
However, in the domestic market, Adani Group firms' losses ballooned to more than USD 100 billion after the Chairman of the group Gautam Adani declared that the flagship firm was taking a U-turn with its follow-on public offer.
BSE key indices Sensex surged 224 points to 59,932.24 while NSE Nifty50 lost 5 points to 17,610.40 on Thursday.
On Thursday, shares of Adani Group flagship firm, Adani Enterprises, were down 26 per cent to Rs 1,565.30 apiece. In a span of five sessions, it has lost more than Rs 1,719.65 or declined over 52.35 per cent.
Adani Ports and SEZ lost Rs 35.65 or dropped 7.20 per cent to Rs 459.50 on Thursday morning. The firm's shares had lost more than Rs 224.10 or 32.78 per cent in a period of five days. Adani Green's shares dropped 10 per cent to Rs 1,039 apiece, while it lost Rs 588 36.15 per cent in just five days.
FMCG firm Adani Wilmar dropped 5 per cent to Rs 421 apiece on Thursday morning while it lost Rs 95 or dropped more than 18 per cent in a span of five days.
Adani Transmission shares went down 10 per cent flat to Rs 1,551.15 apiece in the morning trade on Thursday. The firm had lost Rs 575 or dropped 27 per cent in just 5 days.
On Thursday, Adani Group Chairman Gautam Adani said it would not be "morally correct" to go ahead with the Rs 20,000-crore share in the current market condition.
"After a fully subscribed FPO, yesterday's decision of its withdrawal would have surprised many. But considering the volatility of the market seen yesterday, the board strongly felt that it would not be morally correct to proceed with the FPO," Adani said in his address to investors after withdrawal of the fully subscribed FPO.
Speaking on the lines of Adani Group stocks, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "The excessive volatility triggered by the crash in Adani stocks will die down after some time. FIIs (foreign institutional investors) will have to invest in India if they are to benefit from the India Growth Story."
