Adani's market loss swells to $70 billion

Adani Group, one of India's largest conglomerates, has been hit hard by the recent stock market meltdown, with almost $70 billion wiped out in seven listed group entities over the past three days. Adani Transmission, Adani Total Gas, Adani Green Energy, Adani Power, and Adani Wilmar were all down by more than 15%, with Adani Total Gas and Adani Transmission plummeting 20% each on Monday

Adani Ports and Special Economic Zone also lost 16% on the same day. This dramatic setback has caused immense losses to the 60-year-old conglomerate, and investors are yet to receive any assurance from the group.

The drastically reduced share prices have caused immense losses to the 60-year-old conglomerate, with no assurance from the group yet regarding how it plans to recover from the setback. Adani Group’s market capitalisation has been brought down to $17 billion from its earlier value of $87 billion.

The cause of the losses has been attributed to a variety of factors. These include the rising crude oil prices, which have had a major impact on Adani’s businesses such as Adani Wilmar and Adani Total Gas, as well as the availability of cheaper renewable energy sources, which is reducing demand for Adani Power’s services. Furthermore, Adani Transmission’s debt levels are high, and the company has been struggling to meet its obligations.

Life Insurance Corporation (LIC), India's largest insurance provider, stands to lose a significant amount of money due to the recent losses suffered by Adani Group. This is because LIC has a large stake in several Adani Group companies, such as Adani Green Energy, Adani Ports and Special Economic Zone, Adani Power, Adani Wilmar, and Adani Total Gas.

As a result, the losses incurred by the Adani Group have directly impacted LIC, resulting in a significant decrease in its returns and investments. Additionally, Adani’s poor financial performance and the current market conditions have made it difficult for LIC to recoup its investments in the Adani Group, leading to further losses.

It is important to note that LIC is a public sector undertaking, and its losses due to Adani’s market performance could have a damaging impact on the insurer’s overall portfolio. As such, LIC is advised to take a cautious approach to investing in stocks linked to Adani Group, and to reassess the performance of these stocks on a regular basis in order to avoid further losses.

State Bank of India (SBI), one of the largest public sector banks in India, stands to lose a significant amount of money due to the recent losses suffered by Adani Group. This is because SBI has a large stake in several Adani Group companies, such as Adani Green Energy, Adani Ports and Special Economic Zone, Adani Power, Adani Wilmar, and Adani Total Gas.

As a result, the losses incurred by the Adani Group have directly impacted SBI, resulting in a significant decrease in its returns and investments. Additionally, Adani’s poor financial performance and the current market conditions have made it difficult for SBI to recoup its investments in the Adani Group, leading to further losses.

It is important to note that SBI is a public sector undertaking, and its losses due to Adani’s market performance could have a damaging impact on the bank's overall portfolio. As such, SBI is advised to take a cautious approach to investing in stocks linked to Adani Group, and to reassess the performance of these stocks on a regular basis in order to avoid further losses.

It remains to be seen how Adani Group will attempt to recover from these major losses. In the meantime, investors are advised to watch the movements of the company’s stocks closely and make wise investment decisions based on the current market conditions.