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Indian billionaires lead losses on the Bloomberg Billionaires Index so far this year.
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This is behind the massive sale of Adani Group’s listed companies and the wider Indian market.
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Publicly traded companies in Adani are under great pressure following short-selling attacks.
Indian billionaires have not had a great 2023 so far.
The massive sell-off of India’s richest man Gautam Adani’s listed companies has rippled through the country’s markets following shocking short-selling reports.
Publicly traded companies in the Adani Group have hit market value since US short-seller Hindenberg Research released a scathing report last Tuesday alleging a “brazen stock manipulation and accounting fraud scheme” at the Adani Group. In total, it lost more than $68 billion. The conglomerate’s flagship Adani Enterprises has lost more than 25% in market capitalization this year alone.
The crash has slashed Adani’s net worth by $36.1 billion so far this year, making him the top loser on the Bloomberg Billionaires Index. The Indian businessman has also fallen off his list of the 10 richest people in the world and is now his 11th richest person in the world, slipping down from his fourth place last week.
While the Adani Group has defended itself vigorously, Hindenburg has also doubled down on its initial reports.
Adani remains the richest Asian in the world, but his wipeout of wealth shows the extent of his losses in the Indian market.
Following Adani in the Bloomberg Billionaires Index are Indian billionaires Mukesh Ambani, Radakishan Damani and Savitri Jindal, who have lost around $5 billion, $2 billion and $1 billion so far this year. Their net worth has been declining against the backdrop of declining stock prices in companies in which they hold large stakes.
Ambani is the chairman and majority shareholder of the conglomerate Reliance Industries, and Damani is the founder of Avenue Supermart. Both companies’ stocks have posted losses so far this year.
Stocks in most of Jindal’s steel and power conglomerates have also fallen this year.
The drama surrounding the Adani Group has taken a toll on market sentiment across South Asian markets. Indian benchmark his index, Sensex, has fallen more than 2% so far this year.
Shmita Debeshwar, chief economist for India at macroeconomic consulting firm TS Lombard, said: “Fraud allegations at Adani Group, one of India’s most valuable conglomerates, are pushing foreign investors to reopen China’s economy. The decline in Indian equities accelerated as portfolios were rebalanced in line with the wrote in a Monday note seen by an insider.
Investors will increase scrutiny of Indian stocks, but the country’s corporate governance indicators outperform most emerging markets, including Saudi Arabia, China and Brazil, according to TS Lombard’s November 2022 report. Excellent, added Deveshwar.
Read the original article on Business Insider
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