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Adani Stocks Lose Ground Amid Broader Market Selloff
Adani companies' shares have fallen over the past three months.
Many other Indian stocks have also gone down during this time.
The article says investors selling shares and worries about higher bond yields may be adding pressure.
Higher yields can make borrowing and repaying debt more expensive for companies.
GQG Partners, an investment firm that owns Adani shares, has reduced some of its holdings.
An Adani executive said people should look at the group's assets rather than speculation.
Some analysts' estimates still suggest that certain Adani shares could rise over the next year, but those are estimates, not guarantees.
Adani group shares have fallen sharply over three months as Indian equities faced broad selling.
The Nifty declined 6.3% over the same period, while one in four index constituents fell more than 10%.
Adani Energy Solutions fell 21%; Adani Enterprises dropped 15.89%, and several other group shares also declined.
GQG Partners reduced holdings in several Adani companies, including Adani Energy Solutions, where its stake fell to 3.46% from 4.14%.
An analyst cited market weakness and rising bond yields as possible pressures; Adani executive Jugeshinder Singh urged investors to focus on the group's assets.
- Who
- Adani group companies, their investors, and GQG Partners.
- What
- Adani shares fell amid a wider market selloff, while GQG Partners reduced stakes in several group companies.
- Where
- India's stock market.
- When
- Over the three months covered in the report; GQG's Adani Energy Solutions stake comparison is between the end of June and August 31.
- Why
- The article cites broad market weakness, foreign investor outflows, and rising bond yields as factors that may be weighing on shares and company margins.
Caution about market pressures
Focus on assets and potential
What is weighing on Adani shares?
Caution about market pressures
WealthMills Securities strategist Kranthi Bathini said general market weakness and rising bond yields could weigh on sentiment and pressure margins in the short to medium term.
Focus on assets and potential
Adani executive Jugeshinder Singh said investors should look at the group's assets rather than speculation, and described the group's infrastructure as enduring.
Investor actions and outlook
Caution about market pressures
GQG Partners has reduced stakes in several Adani companies, and broad selling and foreign investor outflows have contributed to market pressure.
Focus on assets and potential
The article reported consensus estimates suggesting potential 12-month upside for Adani Enterprises, Adani Green, and Adani Energy Solutions.
Key facts
- Nifty performance
- Down 6.3% over three months.
- Adani Energy Solutions
- Shares fell 21% over three months; GQG's stake was 3.46% on August 31, down from 4.14% at the end of June.
- Adani Enterprises
- Shares fell 15.89% over three months.
- Other reported share declines
- Adani Total Gas fell 20%, Adani Power 13%, and NDTV 23%; ACC and Ambuja Cements fell 16–20%.
- FPI outflows
- Foreign portfolio investor outflows from India had approached Rs 3 lakh crore this year, according to the article.
- Analyst estimates
- The article reported 12-month consensus estimates implying potential upside of 44% for Adani Enterprises, 25% for Adani Green, and 41% for Adani Energy Solutions.
Quotes
Kranthi Bathini
Equity strategist at WealthMills Securities
“But now, the general market weakness, with the Nifty in a corrective phase, and rising bond yields could be weighing on sentiment. The Adani group carries debt, as do companies across the infrastructure sector, and rising bond yields can put pressure on margins in the short to medium term.”
businesstoday.in
Jugeshinder Robbie Singh
Adani Group executive who posted the remarks on X
“In the end, substance always outlasts speculation. Look at the assets, not at the hyperventilating speculators.”
businesstoday.in
Sources
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