‘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.