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Adani Group's stocks continued to decline following serious bribery allegations against Gautam Adani, with a staggering market capitalisation loss of Rs 2.2 lakh crore on November 21. Adani Enterprises plummeted 23% to Rs 2,184, while Adani Green Energy fell 20% to Rs 1,146. Other firms, including Adani Energy Solutions and Adani Ports, also experienced significant losses, further impacting the group's market value.
Gautam Adani faces US bribery charges linked to a $250 million scheme, causing significant declines in Adani Group stocks, which fell up to 25% on November 21. The group's market capitalization dropped by Rs 2.2 lakh crore, impacting related companies and major lenders like SBI and PNB, whose stocks fell by up to 7%.
Adani Group's market capitalization plummeted by Rs 2.2 lakh crore on November 21, with stocks falling up to 20% following US bribery charges against Gautam Adani. Prosecutors allege he and other executives paid over $250 million in bribes to secure solar energy contracts, violating federal laws while raising $1.36 billion from American investors. Just hours before the allegations, Adani raised an additional $600 million through green dollar bonds from US investors.
The government has announced an increase in royalty rates for offshore minerals, raising the fee for dolomite from Rs 40 to Rs 50 per tonne. Additionally, limestone and lime mud, essential for cement production, will also see a revised royalty rate.
PL Capital has identified Ambuja Cement, ICICI Bank, and Reliance Industries as top stock picks for the upcoming Diwali season, aligning with the investment strategies for Samvat 2081. Analysts at Prabhudas Lilladher have also recommended ICICI Bank, Reliance Industries, and Bharat Electronics among their preferred investments.
Ambuja Cements reported a 42% year-on-year decline in Q2 FY25 consolidated net profit, falling to Rs 456 crore, due to weak cement prices and sluggish demand. Despite this, revenue from operations increased slightly by over 1% to Rs 7,516 crore. The company's EBITDA dropped 15% to Rs 1,111 crore, with an EBITDA margin of 14.8%. Following the results, Ambuja's share price rose 3% to Rs 569.55 on the NSE.
The Q2 earnings season for 2024 is in full swing, with major companies like Bharti Airtel, Sun Pharma, and Indian Oil set to release their financial reports today. Earlier, Reliance Industries reported a 4.8% profit decline, while HCL Tech and TCS posted profit increases of 10.5% and 5.0% YoY, respectively. Upcoming reports from giants such as Maruti Suzuki and Dabur India are also anticipated this week.
Several major companies are set to announce their Q2FY25 results today, including Bharti Airtel, Sun Pharmaceutical Industries, Ambuja Cements, and Adani Power. Other key players releasing earnings include Punjab National Bank, Indian Oil Corporation, BHEL, Federal Bank, IOC, JSW Infrastructure, and Motilal Oswal.
Adani Group is in advanced discussions with the Odisha government to establish its first greenfield cement plant, with a production capacity of 4 million tonnes per annum, at an estimated cost of Rs 3,000-3,500 crore. The facility is expected to be operational within two to three years. Additionally, Adani plans to invest Rs 5,500 crore in the cement and logistics sectors in Bihar, with a clinker grinding unit projected to cost Rs 1,600-2,000 crore.
On October 28, around 180 companies, including Bharti Airtel, Sun Pharma, and Indian Oil, are set to report their Q2 earnings, impacting market sentiment. The Sensex fell by 663 points to 79,402.29, while the Nifty 50 dropped 219 points to 24,180.80, amid increased volatility. Analysts suggest that the Nifty may find support in the 23,900–23,950 range, with resistance levels at 24,500 and 24,700.
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