The fall in Adani Group’s shares has become like a double-edged sword. On one hand, it has become a cause of concern for the government as well as the market. At the same time, investors are worried about huge losses. In such a situation, are these 5 questions troubling you?
From the government to the market, the Adani case has become a cause of concern.
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The Hindenburg Research report is no less than a shock for industrialist Gautam Adani, who was crowned Asia’s richest person and the third richest person in the world till recently. After the arrival of this report, where Adani Group’s shares have been shattered, Gautam Adani has now been out of the list of the world’s top-20 rich. Not only this, where this one case has put the government and the market in a quandary, the lives of the stock market investors are also hanging in the balance.
In such a situation, if some questions surround your mind, or you are afraid of loss. So maybe these questions and answers of ours will be of your use.
- Will SBI customers’ money sink?
The biggest question is related to the investment of LIC and SBI in Adani Group. Both these financial institutions have made huge investments in Adani Group. So will the customers of these financial institutions have to bear the brunt of Adani Group’s losses? You can understand this in such a way that the customers of the bank get insurance protection from the Deposit Insurance and Credit Guarantee Corporation on deposits up to Rs 5 lakh. In such a situation, your deposit up to 5 lakhs in SBI is safe. At the same time, RBI has placed State Bank of India in the list of ‘Too Big To Fail’ bank. In this case the chances of loss are less. - Will LIC policy holders be at loss?
After this talk of LIC, then Life Insurance Corporation of India is the largest insurance company in the country. Regarding investment in Adani Group, the insurance company has made it clear that even in the event of Adani Group’s shares being down, it has made a substantial profit on its investment in the group. At the same time, about Rs 21,000 crore is lying unclaimed with LIC. In such a situation, the customers hardly have to compensate for this loss. The rest can read the detailed news about this here. - How much damage did the Hindenburg Report cause to the Adani Group?
The report of Hindenburg Research came out on 24 January. Since then, a tremendous decline is being recorded in the shares of the listed companies of the group. In less than 10 days, the share value of Adani group companies has decreased by Rs 10 lakh crore. At the same time, the total market capitalization of the group companies has almost halved. Rs 10 lakh crore is equal to the entire capital expenditure in the new budget of the Government of India. - Is this the right time to buy Adani shares?
The shares of Adani Group have definitely come down at the present time. In such a situation, this question is important whether the shares of the company should be bought or sold to avoid more losses. In this regard, ET has quoted Sanjeev Bhasin of IIFL Securities as saying that it completely depends on an investor whether he is influenced by the movement of the stock market or not. However, in the long term, Adani Group’s port and cement company is expected to do well. Their share price is very attractive now. - Why is the fall of Adani shares a matter of concern?
The fall in the shares of Adani Group has dealt a big blow to the company’s image. In such a situation, the company will face difficulty in raising funds from the market or taking loan from the bank to complete its projects. In this way, the company will either have to extend the deadline of the projects or cancel some of the projects. In both the circumstances, the company will have to bear the brunt to some extent. - Why do Adani group companies have to take loans?
Adani Group mainly works in the core sector. This includes works ranging from solar power plants to ports, airports, roads, cement, gas and electricity transmission lines. All these are high capital investment businesses, while the returns from them come at a very slow pace. In such a situation, the company needs more working capital to maintain a pace of its production and manufacturing. That’s why he has to take a loan. On the other hand, recently the Adani group has expanded its business a lot. This includes green energy, coal sector to petrochemicals and many contracts abroad. That’s why the company has needed to take more capital and loans. - Will the ruin of Adani affect the country’s economy as well?
Definite loss to Adani Group will affect the economy of India. You can understand this from the recent events. After the fall in the shares of Adani Group, a decline has been recorded in the shares of big groups like LIC and SBI investing in it. Not only this, the perception in the market has weakened. The stock market works completely on sentiment, in such a situation, due to the fall in the shares of Adani Group, the sentiment of investors will be bad, which will slow down the pace of investment in the country. Not only this, if Adani Group fails, then the country will Many big projects will be affected. This is bound to affect the country’s infrastructure and other segments in the long term.
Although the government has denied all these things. The government says that Adani Group’s case is a private company’s case, India’s regulators are capable of taking action on it. As far as LIC or banking sector is concerned, from RBI to Finance Minister Nirmala Sitharaman, everyone has spoken about the strength of India’s banking sector.
