📷 Image Credits: Moneycontrol
The Indian stock market witnessed a significant downturn on June 4, with Adani Group stocks plummeting by up to 18%. This sudden drop comes after a period of substantial gains in the conglomerate’s stock value over the past few trading sessions. The nosedive in the stock prices was attributed to profit-booking and the unwinding of speculative positions as investors sought to lock in their gains or reduce their exposure to the market. As a result, Adani Group’s market capitalization took a massive hit, eroding by over Rs 2.3 lakh crore.
In the previous session, Adani Group’s listed entities saw a notable increase in their market value, adding Rs 1.4 lakh crore and bringing the total market capitalization to nearly Rs 20 lakh crore. However, the abrupt correction on June 4 led to several Adani Group companies experiencing significant losses. Adani Total Gas, Adani Energy Solutions, Adani Power, Adani Green Energy, and Adani Enterprises all witnessed substantial dips in their stock prices.
Apart from these companies, stocks of Adani Ports and SEZ, Adani Wilmar, Ambuja Cement, ACC, and NDTV also saw declines ranging from 8% to over 12%. The overall performance of Adani Group stocks has been volatile, with the conglomerate’s m-cap experiencing fluctuations due to various market dynamics.
Despite the recent downturn, Adani Group’s stock prices had been on a strong upward trajectory, driven by robust earnings performance for the fiscal year ended March 2024. The conglomerate’s EBITDA surged by 40% year-on-year, reaching Rs 66,000 crore in FY24. Additionally, the group focused on reducing debt and founder share pledges, leading to a positive outlook for its financial health.
As experts analyze the market volatility surrounding Adani Group stocks, it is essential for investors to consider the broader economic landscape and the potential impact of external factors on stock performance. While the recent correction in stock prices may present short-term challenges, the long-term prospects for Adani Group remain promising, particularly with the conglomerate’s focus on expansion and strategic investments in key sectors.
