Adani Group stocks experienced notable declines on Tuesday, November 26, with shares of key companies tumbling by as much as 7% during the trading session, a day after Fitch Ratings placed some of the group’s bonds on a watchlist for potential downgrades.
Adani Green Energy’s stock experienced the steepest decline, falling 7%, while Adani Energy Solutions saw a 5% drop. Other stocks, including Adani Enterprises, Adani Total Gas, Adani Power, and Adani Wilmar, registered a decline of 3-4%. Additionally, Adani Ports and Ambuja Cements slipped by around 2%, and ACC and NDTV fell by 1%.
Fitch Places Bonds on Negative Watch Following Bribery Charges
Fitch’s decision to place bonds from Adani Energy Solutions, Adani Electricity Mumbai, and some Adani Ports & SEZ rupee and dollar bonds on a negative watch followed the news that US authorities had indicted key executives from the Adani Group, including Chairman Gautam Adani, on bribery charges.
The charges are related to a multibillion-dollar bribery and fraud scheme allegedly involving Adani Green and Azure Power. Fitch’s action heightened concerns over the group’s financial stability.
Fitch’s report mentioned that these bonds were now under review for potential downgrade after the US charges. The group has faced intense scrutiny since the US indictment was made public on November 21, which sent shockwaves through the market.
Stocks Suffered Sharp Losses After Indictment News
The news of the US indictment, which included allegations that Adani Green raised over $175 million from US investors, caused substantial losses for Adani Group companies.
On Thursday, November 21, shares of Adani Enterprises plummeted by 23%, marking one of the most significant drops for the company. However, the stock saw some recovery in the subsequent trading sessions, gaining 2% and 1%, respectively.
GQG Partners Reaffirms Confidence in Adani Group
Despite the ongoing volatility and the stock price dips, GQG Partners, one of the largest foreign institutional investors in Adani Group, has reiterated its confidence in the conglomerate.
GQG announced that it would not be selling its stake in Adani Group companies and assured that its exposure to the stocks remains manageable, even amid market fluctuations.
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