‘Black Friday for Adani stocks; know the top 5 mutual funds that have suffered the most!

Karan Dsij
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‘Black Friday for Adani stocks; know the top 5 mutual funds that have suffered the most!

Black Friday for Adani stocks: Stocks fall like a pack of cards, five mutual funds which are the most affected.

The market participants over the last couple of weeks were waiting for some key trigger which could help the market to take a decisive direction and most of them assumed that a clear and decisive direction would be only seen on the Union Budget Day, as this is one of the key events for the markets in the near term. However, who knew that the important event i.e., Union Budget would be sidelined and all the limelight would be hogged by the mammoth Adani Group, just ahead of the Budget Day. 

During mid-week, Hindenburg Research, an investment research firm with a focus on activist short-selling focused by Nathan Anderson, based in New York City alleged that the Indian giant Adani Group had participated in a clear stock manipulation and accounting fraud scheme over decades. And, thereafter, the war of words has started between the Adani Group and Hindenburg Research. 

Adani Group’s lead head Jatin Jalundhwala, in an official response to Hindenburg Research said, “The maliciously mischievous, unresearched report published by Hindenburg Research on January 24, 2023 has adversely affected the Adani Group, our shareholders and investors.” Furthermore, he said “We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.” In response to this, Hindenburg said they welcome Adani Group’s legal ‘threat’. While the jury is still out on this subject but it has done dreadful damage to Indian benchmark indices and also to the Adani Group stocks. 

The NSE benchmark Nifty50 is down by nearly 3 per cent and talking about Adani Group stocks, they have fallen like a pack of cards. The stock of Adani Enterprises which was added to Nifty50 last year has seen a sharp sell-off to the tune of 15 per cent on Friday and the stock is seeing no signs of respite from the sharp sell-off. Hence, it has definitely become a ‘Black Friday’ for Adani Group stocks. The ripple effect is felt on the banking and financial stocks as well as they have lent money to Adani Group. 

The important point is the fact after Adani Enterprises’ inclusion in the Nifty50 index, it forced exchange-traded funds (ETFs) and index funds- on which rides a lot of pension money to buy the stock that traded at an astronomically high P/E multiple. Also, the worrisome point was the fact that the index inclusion came after the best has played out for the stock. 

Now, let us check the top 5 Mutual Funds which have investments in Adani Enterprises. 

Funds 

% Net Asset 

Amount Invested in Cr 

No. of Shares 

SBI Nifty 50 ETF 

1.32 

2,042.27 

52,93,113 

SBI Balanced Advtg Dir 

2.44 

500.39 

14,26,500 

UTI Nifty ETF 

1.32 

533.51 

13,82,738 

Kotak Balanced Advtg Dir 

2.1 

302.78 

7,84,750 

Nippon Ind ETF Nifty 50 BeES 

1.32 

137.05 

3,55,207 

 

97 Mutual Funds have investment in Adani Enterprises Ltd as on December 31, 2022. 

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6 comments on article "‘Black Friday for Adani stocks; know the top 5 mutual funds that have suffered the most!"

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Reggie Fernandes

Adanis have manipulated all their cos. Syovks to the highest degree under the blessings of the higher echelons of the ruling party. Jai ho bharat mata ki jai ho.


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Amitkumar Soni

Nothing will happen again Adani will become number one, this is the propoganda of America they do not able to digest that Indian business man also become the number one.


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Mukesh rai

This is american propaganda they are not digesting that any asian /Indian business man challenge to American but the days will change he will become number ONE


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SUNIL AGRAWAL

Adani group is v reputed group . entering hydrogen green energy fuel . its future is excellent v soon again it will be nos 1 company in the world . all allegations will be cleared soon .


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Ankit Kumar

This is universal truth that. If anyone rising day by day. Others think only that how to drag him. So same incident happened only for temporary time. All the issues will be resolved soon and Again Adani Group will become No.1. This is race of World's Richest Persons and Maintain Their Positions. Adani Group will Never Break The Faith. Sabse Age Honge Hindustani. Remember These words. And It will be proved very soon.


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Satish Kumar

It appears that if Hiddenberg is alleging mis-representation or fraud than other on other hand Adani group is saying all is well , then there is something in between which is the reality.

Hence let us await SEBI or Government investigation in the matter. In the meantime new issue should be repriced in line with latest market rates.

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