Two global rating firms upheld the ratings of the group companies and its French partner justified its investment in the group companies. Along with this, for the first time after January 24, shares of Adani Enterprises, the group’s flagship firm, closed with a profit.
Friday was a day of rest for the embattled conglomerate led by Gautam Adani after a turbulent few days. Two global rating firms upheld the ratings of the group companies and its French partner justified its investment in the group companies. Along with this, for the first time after January 24, shares of Adani Enterprises, the group’s flagship firm, closed with a profit.
However, the company’s shares fell as much as 35 percent in trading on the day. Adani Ports and SEZ also closed at eight percent. US company Hindenburg Research has accused the Adani group of engaging in “equity manipulation and accounting fraud.” Since then, the shares of group companies have been falling continuously. The Adani group has rejected the accusations made in the Hindenburg report.
Major French energy company TotalEnergies, which has stakes in two Adani group companies, said on Friday it had not revalued its stake amid a sharp drop in the group’s shares. TotalEnergies said in the statement that it had made its investments in Adani Group companies in full compliance with Indian laws and based on its internal operating procedures. Moody’s Investors Service said it is assessing the financial strength of the Adani group companies, including their cash position.
Another rating agency, Fitch, said its rating of the group’s companies would not be affected for now. However, the US rating agency S&P Global Ratings has maintained the outlook for Adani Ports and Adani Electricity from stable to negative, while maintaining the outlook for both companies. The Reserve Bank of India (RBI) said that India’s banking sector is strong and stable. The central bank also said it is constantly monitoring lenders.
In a statement, the RBI said it continues to monitor the banking sector, taking note of media reports raising concerns about Indian banks’ exposure to a “business group.” However, the RBI did not name the Adani group. The country’s largest bank, the State Bank of India (SBI), said on Friday that it has loans of around Rs 27 billion to Adani group companies, which is just 0.88 per cent of total loans. disbursed.
Baroda’s state-owned bank said on Friday it has cut lending to crisis-hit Adani group companies in the past two years and is not concerned about the quality of outstanding loans. Congress and 15 other opposition parties said they would continue to raise the demand in both Houses of Parliament for a discussion and investigation of the allegations made by Hindenburg Research against the Adani Group.
Congress leaders, DMK, Aam Aadmi Party, Bharat Rashtra Samithi, Samajwadi Party, Nationalist Congress Party, Janata Dal (United) and several other parties attended the 16-party meeting in the Chamber of the Opposition Leader at Rajya Sabha Mallikarjun Kharge in Parliament House. The Communist Party of India (CPI) will hold a rally on February 13, demanding an investigation by the Joint Parliamentary Committee (JPC) into the matter related to the Adani Group. Senior Congress leader Shashi Tharoor alleged that the Narendra Modi government does not allow the Adani Group related issue to be discussed in Parliament as he believes it may embarrass him.
On the other hand, Minister of State for Parliamentary Affairs Arjun Ram Meghwal said that the opposition should be allowed to discuss the motion of thanks in the president’s speech and they can raise any topic they want during the discussion. Finance Minister Nirmala Sitharaman told News18 that Adani’s developments are not reflected in the Indian regulatory system and that financial markets are working well. Finance Secretary TV Somanathan has said that the stock market turmoil triggered by the sharp fall in Adani Group shares is just a “storm in a cup of tea” from a macroeconomic point of view.
‘A storm in a teacup’ is an idiom meaning to show anger and concern over a matter that is not important. In an interview with PTI, Somanathan said that India’s public financial system is very sound and the volatility of the stock market is not a concern for the government. He said that independent regulators are there to take the necessary steps in this regard.
Disclaimer:Prabhasakshi has not edited this news. This news has been published from PTI-language feed.