The logo of the Adani Group can be seen on one of its buildings in Ahmedabad. file | Photo Credit: Reuters
Shares of Adani group companies declined on Monday, with flagship company Adani Enterprises plunging 7% after credit rating firm Moody’s revised the rating outlook of four group companies to ‘negative’ from ‘stable’.
Shares of group companies closed in the red mark amid volatile trading in the market.
“Shares of Adani Group were under pressure today. During the day, there were more negative news flows for the group which weighed on investor sentiments, including a sharp cut in revenue growth target by the group along with a downgrade in outlook of four Also included.Adani Group of companies by Moody’s.
“Adani group stocks (including Ambuja, ACC and NDTV) have lost around Rs 10.2 lakh crore or about 53 per cent of their combined market capitalization since January 24 till date,” said Manish Chowdhary, head of research at Stoxbox.
Shares of Adani Enterprises closed at ₹1,717.55, down 7.03% on Monday. During the day, shares of the flagship company fell 10% to ₹1,662.65 each – also its lower circuit level on the BSE.
The market valuation of the flagship company declined by ₹14,797.22 crore to ₹1.95 lakh crore.
Shares of Adani Ports and Special Economic Zone (APSEZ) slumped 5.25% to close at ₹553.20 per share, while Ambuja Cements declined 5.17% to close at ₹342.40 per share.
The market capitalization of APSEZ declined by ₹6,620.82 crore to ₹1.19 lakh crore.
Besides, Adani Power closed at Rs 156.10, Adani Transmission at Rs 1,126.85, Adani Green Energy at Rs 687.75 and Adani Total Gas at Rs 1,195.35.
Similarly, Adani Wilmar shares also declined to close at Rs 414.30 and NDTV at Rs 198.25 per piece.
The shares of these companies declined 5% each and their closing levels touched the respective lower price band on BSE.
During the day, shares of Adani Transmission, Adani Green Energy and Adani Total Gas hit a 52-week low of ₹1,126.85, ₹687.75 and ₹1,195.35, respectively, on the exchange.
Besides, ACC shares fell 3.06% to ₹1,823.40 per piece.
Meanwhile, the 30-share BSE Sensex benchmark index fell 250.86 points, or 0.41%, to close at 60,431.84 on Monday.
“The market cap of Adani group companies continued to slide down 5.4% on February 13 after the group revised its revenue growth target to 15-20% for the next financial year, a significant downgrade from the earlier target. 40%,” said Deepak Jasani, head of retail research at HDFC Securities.
Moody’s Investors Service said in a statement on Friday that it has revised the rating outlook on four Adani group companies to negative from stable.