The fall in Adani’s shares comes after impressive gains in recent years.
Waterloo for Indian tycoon Gautam Adani as accelerated selloff of his business giant wiped nearly $45 billion off its market value in less than two days
As Asia’s richest man struggles to cut losses, pressure is mounting on him as his net worth erodes and threatens investor sentiment following a $2.5 billion sale of shares by his flagship company , Adani Enterprises Ltd.
Adani Enterprises lost as much as 9.7% on Friday, while Adani Green Energy Ltd. and Adani Total Gas fell 20%.
The fall in Adani’s shares comes after impressive gains in recent years.
Adani Enterprises’ five-year rise has outstripped even the likes of Elon Musk’s Tesla, and Adani himself has become the richest man in Asia.
“The issues strike at the heart of the Indian corporate scene, which is dominated by a number of family-controlled conglomerates,” said Gary Dugan, managing director of the Global CIO Office.
“They are opaque by nature and global investors need to take the lead on corporate governance issues.”
“After last year’s stellar performance, Indian stocks and stocks of any high-profile companies are open to downside profit-taking risk,” Duggan added.
“Therefore, the broader Indian equity market could be at further risk on the downside, with Adani as the catalyst.”
India’s benchmark S&P BSE Sensex lost more than 1 percent on Friday, the worst performer in Asia.
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