FOR the Adani empire’s stocks, an underwhelming election win for Narendra Modi’s party is worse than a short-seller attack.
All 10 Adani Group shares plummeted on Tuesday (Jun 4) after the Modi-led political alliance failed to deliver the landslide electoral victory predicted by exit polls, wiping out almost US$45 billion in group market value.
It was the biggest single-day rout the conglomerate has faced, dwarfing the hit from Hindenburg Research’s allegations of corporate malfeasance over a year ago. The group’s market value plunged to US$189 billion.
The sell-off sliced almost US$25 billion off Gautam Adani’s net worth, which fell to US$97.5 billion, according to Bloomberg billionaires Index, toppling him as Asia’s richest person. He had reclaimed that top spot just days earlier when bullish exit polls for Modi boosted the group’s market value by US$20 billion on Monday.
The market gyrations are a stark reminder that investors see the conglomerate’s fortunes as being tied to Modi’s mandate as India’s leader. The Adani Group and its founder have maintained that they have no improper relationship with the government and can execute their ambitious infrastructure projects under any administration.
Nevertheless, Adani knows he’s a heatscore in India’s election, with opposition leaders frequently invoking his name at campaign rallies and Modi himself unexpectedly accusing his rivals of receiving illegal cash from the billionaire at one point in the long campaign.
https://www.businesstimes.com.sg/in...billion-adani-group-stocks-worst-one-day-rout
