Adani shares continue to slide as Hindenburg sticks to ‘manipulation’ claim

However, two index-based stocks – Adani Ports and FPO-bound Adani Enterprises – recovered from morning’s low to trade 2-3% lower.

The Adani Group has called the findings “malicious” and unverified and said it is looking for punitive action against the US-based research company. The FPO anchor portion of the flagship Adani Enterprises was fully subscribed on Wednesday after the report became public.

Shares of Adani Total Gas declined 14.62%, Adani Transmission 14.11% and Adani Green 10.17%.

Benchmark Nifty and Sensex dropped over four-fifths of a per cent each, dragged by lenders such as ICICI and Axis Bank, which were down 2-3% while SBI was down 1.72%. February Bank Nifty futures were down 1.54%.

Siddarth Bhamre of Religare Broking said, “Banks with exposure to the Adani group have seen a correction undermining the market correction.” ,

Interestingly, foreign brokerage CLSA in a report on Adani loans said, “Indian banking exposure is less than 40% of total group loans. Within this, private banks’ exposure is less than 10% of total group loans and most banks (including ICICI/Axis) have indicated that they have largely funded assets with strong cash flows such as airports/ports.”

PSU banks have material exposure (30% of the group loan), but this loan has not increased in the last three years. “Most of the incremental funding to the group has come through overseas sources for new businesses and acquisitions. To conclude, the ballpark risk exposure of private banks is 0.3% of FY24 loans and 1.5% of FY24 networth. For PSU banks, the exposure is 0.7% of FY24 loans and 6% of FY24 networth,” it added.