A full-time stock market investor, Basant Maheshwari said on Wednesday, “When Bull market The leader falls, it doesn’t fall by 10% or 20%.. you can go back and look at historical data, that bull market leader who is the poster boy falls by 80% to 90%…”
“Earlier we used to call Adani the poster boy of the bull market. And is waiting on the sidelines with the hope that Adani will end his crisis and then he can move on..”
Maheshwari, who is also co-founder and partner at BM Wealth Advisors, said, “So whatever has to happen with Adani shares, we hope it happens quickly because it will be good for all of us…if Adani’s shares have to fall by 90% then it should fall immediately… even if 20% has to fall then that too should happen immediately…”
He said, “When Adani’s problem is over, then the market can move forward…”
Maheshwari, however, reiterated that he is not predicting a 90% drop in Adani shares. He emphasized that he was giving the impression that the top stocks of the bull market had fallen in this manner.
7 listed Adani Stocks Declines on Dalal Street range from 44% to 82%. While media and cement business have followed suit with losses ranging between 37% to 64% from their 52-week highs. Adani shares suffered extreme losses after a controversial report by a US-based short seller came out late on January 24, accusing billionaire Gautam Adani and his group of fraud, stock manipulation and tax evasion.
After the release of Hindenburg’s scathing report on January 24, Adani Group’s shares fell in value by 60%.
Mitul Shah – Head of Research, Reliance Securities said, “Adani Group shares’ woes worsened as all 10 stocks faced selling pressure. Since the release of the Hindenburg report on January 25, Adani Group shares has lost 60% of its value.”
Flagship firm Adani Enterprises closed down over 10.4% on Wednesday 1,404.85 each. Adani Ports closed down 6.25%. 546.85 each. Rest of Adani’s designated scrips had touched the lowest range of the day and were consolidating around those levels.
Meanwhile, Adani Wilmar stock froze at 5% lower circuit Closes at 390.35 while Adani Total Gas also touches 5% lower circuit 834.95 each. Similarly, Adani Green Energy, Adani Transmission and Adani Power saw 5% fewer circuits each 539.30 each, 788.75 each, and 162.60 respectively.
Adani Transmission, Adani Total Gas and Adani Green Energy also hit lower circuits at their 52-week lows.
Adani’s newly added media arm fizzles out at NDTV’s share price 201.90 down 4.18% on the BSE. While the cement business also faced huge disruption due to the off stock of Ambuja Cements down 4.92% at 335.55, and on the ACC stock 1,752.35 down 4.13%.
The rally in Adani’s shares dragged the broader markets as well.
This will be the worst day in two weeks for Adani Group shares. investors lost all around These companies have assets worth Rs 51,294.04 crore due to decline in market valuation.
Adani’s share market value has declined overall as of the end of February 22 17.45 lakh crores.
“The market capitalization of the Adani group is now down 70% from its peak, from around Rs 25 lakh crore to Rs 7.55 lakh crore,” said Rohan Shah, principal technical analyst at Stoxbox.
When will the turmoil in Adani shares end seems uncertain as the group grapples with court hearings and regulatory scrutiny following the Hindenburg report. Also, index rejigs have kept Adani’s listed securities in focus. Another important factor that is being closely monitored is Adani’s call for loan repayment.
Watch Basant Maheshwari’s statement here:
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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