Indian stock markets slump as Adani shares plunge |
Indian equity indices Sensex and the Nifty closed with losses on February 27 as the Bombay Stock Exchange Sensex ended below the 59,300 mark. The Nifty, which is the index of the top 50 companies on the National Stock Exchange, settled below the 17,400 level. Both the indices declined amid mixed global cues. Sensex dropped 176 points, or 0.30 percent, to end at 59,288. The Nifty-50 also fell 73 points, or 0.42 percent, to close at 17,393. Shares of four Adani group companies and Life Insurance Corporation, which has a sizable equity stake in the Adani group, hit their 52-week lows on the stock exchanges as the sell-off continued. Adani Green Energy, Adani Transmission, and Adani Total Gas fell by five percent each to hit their 52-week low levels of Rs 462.45, Rs 676.55, and Rs 715.95 respectively amid sustained selling pressure. ACC declined by 1.95 percent to hit its 52-week low of Rs 1,659.25 on the BSE. On the other hand, LIC, India`s largest insurer which came out with an IPO at Rs 949 per share, hit a 52-week low of Rs 566 on February 27. LIC`s value of holding in Adani group companies has fallen further below the purchase price of Rs 30,127 crores. Shares of Adani Enterprises, the flagship of the group, plunged by 9.17 percent and Adani Power by 5 percent with only Adani Ports remaining in the green. Meanwhile, the market capitalization of ten listed Adani companies plummeted further to hit a low of Rs 6.81 lakh crores from around Rs 19.2 lakh crores, a fall of over Rs 12.38 lakh crores since January 24, 2023, when Hindenburg Research came out with a report alleging "brazen stock manipulation and accounting fraud scheme” over the course of decades by the group. The fall in Adani group`s valuation is more than the market value of TCS, India`s largest IT firm which reported a valuation of Rs 12.19 lakh crores on February 27.
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