Domestic & global funds totalling $3.9 billion are riding on 6 Adani Group stocks

This week’s performance of Adani Group stocks has been turbulent. The equities fell on June 14 after media reports stated the National Securities Depository Ltd (NSDL) blocked the accounts of three foreign funds that were among the major stakeholders in the port-to-energy business, which disputed this.

The equities recovered the next day when NSDL said that the accounts were still operational, although minor selling pressure persisted on June 16 as part of a larger selloff on D-Street.

NSDL has actually blocked the accounts of the three foreign funds Albula Investment Fund, Cresta Fund, and APMS Investment Fund, however this only applies to a subset of accounts and occurred in June 2016.

According to a senior NSDL officer, the accounts were blocked on the instructions of the SEBI in an unrelated matter and had nothing to do with Adani Group entities.

The allegations of blocked accounts made a stir and were closely monitored because the group included a large number of international investors.

According to Morningstar India statistics, 556 global funds are invested in six Adani Group equities with a market value of about $3.52 billion.

Among the funds investing in Adani Green, Adani Total Gas, Adani Transmission, Adani Power, Adani Enterprises, and Adani Ports are ETFs, index funds, mutual funds, and Separate Account.

A total of 286 domestic funds have invested in Adani Group firms, totaling $0.450 billion in market value. According to Morningstar statistics, the overall exposure of both global and local funds is close to $3.9 billion.

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