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Gautam Adani-led Group stocks bled up to 20 per cent during the trading session on Thursday with a number of these high beta counters hitting lower circuits for the day.

Gautam Adani-led Group stocks bled up to 20 per cent during the trading session on Thursday with a number of these high beta counters hitting lower circuits for the day. Amid this sharp selloff, investors of 10-listed Adani Group counters lost more than as much as Rs 2.60 lakh crore at the opening tick.

Adani stocks were tumbling sharply lower on Thursday after US prosecutors indicted billionaire Gautam Adani and seven other senior business executives in connection with an alleged $250 million bribery scheme that they said was concealed from US investors.

The total market capitalization of all 10-listed Adani Group companies tumbled to Rs 11,91,557.79 crore on Thursday, which stood at Rs 14,24,432.35 lakh crore on Tuesday. It means the investors lost about Rs 2.60 lakh crore in the early session.

Adani Enterprises Ltd, the flagship company of the Adani Group, was the biggest loser. It hit the third daily circuit of 20 per cent to Rs 2256.2 on Thursday, from its previous close at Rs 2,820.2 on Tuesday. The total marketcap of the largest Adani Group firm was down Rs 61,096.85 crore to Rs 2,60,406.26 for the day.

Adani Ports & Special Economic Zone Ltd, another Nifty50 constituent from Adani Group, tumbled 20 per cent to Rs 1,031.25 for the day. Its total market capitalization was down by 55,688 crore for the day. Adani Green Energy Ltd was the next biggest loser in terms of mcap wipe out. The stock tumbled more than 19 per cent to erase Rs 42,887.68 crore from its valuations.

Adani Power Ltd, which was down 18 per cent for the day, lost nearly Rs 36,000 crore of mcap. Similarly, shares of Adani Energy Solutions, previously known as Adani Transmission Ltd, was locked in the lower circuit limit of 20 per cent, giving up Rs 21,000 crore from its valuation. Adani Wilmar Ltd was down 10 per cent, with a lost of 4,289 crore loss in the mcap.

Acquired Entities, including Ambuja Cements Ltd and ACC Ltd were down 18 per cent 15 per cent respectively. The former lost Rs 20,296 crore of marketcap, while the latter saw an erosion of 5,700 crore mcap on Thursday. The smallest Adani Group counter, New Delhi Television Ltd (NDTV) dropped over 14 per cent and its mcap was down by Rs 157 crore for the day.

The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani, said Adani Green Energy in its statement.

“The United States Department of Justice have also included our Board member, Vneet Jaain, in such a criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings,” it added.

In other news, Units of Adani Group scrapped a $600 million dollar bond on Thursday after US prosecutors charged Gautam Adani, the group founder with participating in an alleged bribe plot, reported Bloomberg. The group’s existing US-currency notes plunged in Asian trading, it said.

Infact, Rajeev Jain-led GQG Partners, which has been a strategic investor in six Adani Group companies, is monitoring the charges against Gautam Adani and Adani group executives in the bribery case, Reuters quoting sources. The Group may ‘evaluate’ its investments in the Indian conglomerate. The Australia listed GQG Partners’ shares tanked 18 per cent on Thursday.

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Bitcoin has hit a record all-time high above $94,000 for the first time amid reports that US President-elect Donald Trump’s social media company was in talks to buy crypto trading firm Bakkt, Reuters reported on November 20.

The reports fuelled hopes that Trump’s second time in the White House will bring a crypto-friendly administration, it added.

Record High Milestone

The world’s biggest cryptocurrency has more than doubled through 2024. It hit the record $94,078 milestone just at the end of the previous session, before paring to $92,104 in Asia early on November 20.

Speaking to Livemint, Edul Patel, Co-founder and CEO of Mudrex also credited the debut of the first Bitcoin ETF option for the price hike.

 “BlackRock’s Option saw a record $1.9 billion in trading volume on its first day, fueling Bitcoin’s price rally. However, profit-taking following the peak has pulled BTC back to its current level of $92,000. Meanwhile, escalating Ukraine-Russia tensions have put investors in a cautious mode. Bitcoin now faces resistance at $94,600, with support holding steady at $90,400,” he added.

Why The Hike?

According to a report by The Financial Times, citing two sources, the Trump Media and Technology Group, which operates Truth Social, is in talks for an all-stock acquisition of Bakkt.

Bakkt is backed by NYSE-owner Intercontinental Exchange.

Tony Sycamore, market analyst at IG, said bitcoin’s rise to a record high was supported by the Trump deal talk report as well as traders taking advantage of the first day of options trading on the Nasdaq over BlackRock’s Bitcoin ETF.

Crypto Markets on High

Since Trump’s victory in the 2024 US Presidential Elections on November , 2024, cryptocurrencies have soared on the back of his promised support for digital assets.

Traders are watching for less restrictive regulation and and growing excitement has pushed the global crypto market value $3.2 trillion — a record high too, according to data from CoinGecko.

Chris Weston, head of research at Australian online broker Pepperstone, said there is real underlying buying pressure for bitcoin, and “another kick higher should bring in a fresh chase from those who like to buy what’s strong”.

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Meta, the parent company of WhatsApp, plans to challenge the Rs 213.14-crore penalty imposed by the Competition Commission of India (CCI) over alleged unfair business practices related to the messaging app’s 2021 privacy policy update, reported news agency PTI. The penalty comes alongside directives for the company to stop anti-competitive behaviour and implement specific remedies within a stipulated timeframe.

The CCI found that WhatsApp’s privacy policy update in 2021 involved practices deemed anti-competitive, such as sharing user data with other Meta-owned applications for advertising purposes. The competition watchdog has prohibited WhatsApp from sharing such data for five years and has directed Meta to take steps to address these concerns.

According to the order, WhatsApp’s policy must now include detailed explanations of what user data is shared with other Meta entities, linking each data type to its intended purpose. Additionally, the CCI mandated that sharing of user data with Meta for purposes unrelated to providing WhatsApp services should not be a prerequisite for using the app in India.

A Meta spokesperson as mentioned in the report said that the company disagrees with the CCI’s findings and intends to appeal. Defending the 2021 update, the spokesperson explained that it did not alter the privacy of users’ personal messages and was optional. They clarified that no user faced account deletion or service loss for not accepting the policy.

The update, according to Meta, introduced optional business features and aimed to increase transparency around data collection and usage. The company emphasised that WhatsApp remains an essential platform in India, enabling businesses, government services, and small enterprises to operate efficiently.

“WhatsApp supports small businesses and government institutions, especially during COVID and beyond, contributing to the Indian economy. It provides these services by leveraging Meta’s infrastructure,” the spokesperson added, highlighting the company’s commitment to finding a solution that balances user expectations and business operations.

CCI’S REQUIREMENTS

To address data-sharing concerns, the CCI has instructed WhatsApp to introduce an opt-out option for users in India, including those who have already accepted the 2021 policy update. This opt-out feature, which must be prominently displayed through in-app notifications, will give users control over their data being shared with other Meta entities for non-WhatsApp-related purposes.

The commission has also barred WhatsApp from using shared user data for advertising purposes and stipulated that data sharing for other purposes must be transparently communicated.

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Adani Infrastructure will acquire a 30.07 per cent stake in Gujarat-based construction firm PSP Projects for ₹6.85 billion.

The infrastructural company under Gautam Adani-owned Adani Enterprises will buy shares from the top shareholder of PSP Projects, Prahladbhai S Patel, Reuters reported on Tuesday.

PSP Projects works in industrial, institutional, residential and luxury projects including the Surat Diamond Bourse. As of September 30, the company had an order book of ₹65.46 billion, the report said.

The Adani Infra deal values PSP Projects at ₹575 per share, which is a 15 per cent discount from its closing price on Tuesday.

Additionally, Adani Infra will provide an “open offer” to purchase more stakes in PSP Projects as, according to Sebi norms, when a company buys more than 25 per cent of another’s shareholding, it added.

The ports-to-power conglomerate is tapping into various sectors, including a $10 billion investment in energy security and infrastructure in the United States.

Gautam Adani announced that the company will invest $10 billion in energy and infrastructure projects in the United States in a social media post on Wednesday, November 13, while congratulating the US President-elect Donald Trump on his win against Democratic candidate Kamala Harris in the US Presidential Elections 2024. The investment plans to create nearly 15,000 jobs, according to Adani.

“Congratulations to @realDonaldTrump

As the partnership between India and the United States deepens, the Adani Group is committed to leveraging its global expertise and invest $10 billion in US energy security and resilient infrastructure projects, aiming to create up to 15,000 jobs,” Adani wrote on X.

Adani’s other investments include investing $5 billion in India’s metal business after completing two years in the country’s cement industry, as Mint reported on November 12.

This $5 billion funds will be invested in the next 3 to 5 years in mining, refining and production of copper, iron and steel, and aluminium, the report added.

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City gas distribution companies (CGDs) shares crashed 20 percent in the morning session on November 18 after the government has cut the the Administered Price Mechanism (APM) allocation to CGD players by 20 percent for the second month in a row.

A reduced allocation in the APM means that the Centre has cut the supply of low-priced natural gas from old fields to city gas retailers. As a result, the CGDs will have to look for alternative options to bridge the gap in the input gas, such as New Well Gas or spot LNG, which are more expensive.

IGL and MGL have reported a 20 percent and 18 percent additional cuts, respectively, over the ~20 percent cut which was announced earlier on October 16, while Adani Total Gas has indicated a 13 percent cut.

“The revised domestic gas allocation to Company is approximately 20 percent lesser than previous allocation which will have an adverse impact on profitability of the Company,” IGL said.

Confirming the “adverse” profitability hit, IGL said it is exploring all options to address the issue. IGL had recently said that it is in “strong discussions” for an increase in the price of gas, and also to pass it on to customers.

At 10.20 am, shares of IGL cracked 20 percent to quote Rs 324.7, while MGL stock was around Rs 1,150.75 on the NSE, down 12 percent. Gujarat Gas shares sank over 5.8 percent to trade at Rs 458 apiece.

In October, when the first APM cut was undertaken, shares of IGL and MGL saw heavy selling pressure on the bourses. Following the host of downgrades and pessimism, the negative sentiment is expected to continue as CGDs share that profitability will be impacted.

According to various brokerages, the steep pace of the cuts, coupled with no policy communication poses as a sharp negative for the city gas distribution companies. Based on the previous communication, following the sharp cut in October, the further pace of cuts was expected to be more moderate and tapered.

“CGD companies highlighted that prices would be hiked post-festive season to partially recover lost margins. However, no action has been seen so far and with this additional cut, the margin outlook has deteriorated with no near-term clarity on the course of action,” said Emkay Global.

“The implied non-APM blended gas price for the companies were $13-14/mmbtu, hence, replacement by such gases would impact blended EBITDA/scm by Rs 2.7-3 and necessitate at least an Rs 4.5-4.8/kg hike,” added the brokerage.

According to Nuvama Institutional Equities, with no price hikes and a rising costs of input gas for the companies, the EBITDA in FY26 could take a 43–63 percent hit. The domestic broking firm downgraded IGL and MGL to ‘reduce’, while giving Gujarat Gas a ‘hold’ call.

International brokerage Jefferies downgraded MGL and IGL to ‘underperform’ with target prices cut to Rs 1,130 and Rs 295 per share, respectively. Lower APM allocation suggests that cheap domestic gas will soon be completely taken away. The brokerage cut the EPS estimates on MGL, IGL and Gujarat Gas by 31 percent, 27 percent and 19 percent, respectively.

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