The market value loss of India's Adani Group soared to more than US$100 billion (about NT$2.9 trillion) on Thursday (2nd).


[Financial Channel/Comprehensive Report] Adani Group, India's largest conglomerate, has recently been targeted by Wall Street bears, causing its stock price to plunge. The sale of new shares has aroused investors' concerns about the potential systemic impact of Adani Group, and the market value loss soared to more than US$100 billion (about NT$2.9 trillion) on Thursday (2nd).

According to Reuters, another challenge that Adani Group will face on Thursday is the announcement by S&P Dow Jones Indices that it will delist Adani, the flagship company of the group, from this (February 7) Adani Enterprises was removed from the Sustainability Index (DJSI).

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This wave of stock selling was a major setback for the founder of the group, Gautam Adani. (Hindenburg Research) issued a short report only 1 week ago, and its net worth plummeted.

Since Hindenburg released the report on January 24, the total market value of the group has almost halved, and Adani has also given up the throne of the richest man in Asia and India. According to statistics from Forbes, Adani’s net assets have almost halved within a week. Halved to 64.6 billion U.S. dollars (about NT$1.9 trillion), falling all the way to the 16th place on the rich list.

The suspension of new share sales has sent shockwaves through markets, politics and business, with Adani Group shares plunging, opposition lawmakers calling for a wider probe and India's central bank moving swiftly to check banks' exposure to the group.

Meanwhile, Citigroup's wealth arm stopped offering clients margin loans backed by Adani Group securities.

Despite rumors that Indian business tycoons had backed them to subscribe to the company's planned new share offering, Adani unexpectedly announced on Wednesday that it was canceling the new share sale, as the stock plunge triggered by Hindenburg's criticism intensified.

Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, said Adani could trigger a crisis of confidence in Indian equities, which could have a wider impact on the market.

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