Adani group stocks end lower; Adani Enterprises tumbles 7%

New Delhi: Shares of Adani group companies settled lower on Monday, with flagship company Adani Enterprises witnessing a 7 per cent slump after credit rating firm Moody's revised the rating outlook on four companies of the conglomerate to 'negative' from 'stable'.

Amid volatile trading in the market, shares of the group companies closed in the red.

"Adani group stocks were under pressure today. During the day, there were more negative news flow for the group which weighed on investor sentiment, including a sharp cut to the revenue growth target by the conglomerate along with a downward revision to the outlook of four Adani group companies by Moody's.

"The Adani group stocks (including Ambuja, ACC and NDTV) have lost around Rs 10.2 lakh crore or about 53 per cent of their combined market cap since January 24th till today," Manish Chowdhury, Head of Research at Stoxbox, said.

On Monday, the scrip of Adani Enterprises declined a 7.03 per cent to settle at Rs 1,717.55 apiece. During the day, the shares of the flagship company went lower by 10 per cent to Rs 1,662.65 each -- also its lower circuit level on the BSE.

The flagship company's market valuation dipped Rs 14,797.22 crore to stand at Rs 1.95 lakh crore.

Shares of Adani Ports and Special Economic Zone (APSEZ) slipped 5.25 per cent to end at Rs 553.20 per share, while Ambuja Cements dipped 5.17 per cent to close at Rs 342.40 a scrip.

The market capitalisation of APSEZ dropped Rs 6,620.82 crore to Rs 1.19 lakh crore.

Besides, the stock of Adani Power settled lower at Rs 156.10 each, Adani Transmission at Rs 1,126.85, Adani Green Energy at Rs 687.75 and Adani Total Gas at Rs 1,195.35.

Similarly, shares of Adani Wilmar also closed lower at Rs 414.30 and NDTV at Rs 198.25 per piece on the bourse.

Scrips of these companies plunged 5 per cent each and their closing levels touched the respective lower price bands on the BSE.

During the day, scrip of Adani Transmission, Adani Green Energy and Adani Total Gas touched their 52-week low of Rs 1,126.85, Rs 687.75 and Rs 1,195.35, respectively on the exchange.

In addition, shares of ACC fell 3.06 per cent to settle at Rs 1,823.40 per piece.

Meanwhile, the 30-share BSE Sensex benchmark index closed 250.86 points or 0.41 per cent lower at 60,431.84 points on Monday. "The market cap of Adani group companies continued to fall, down by 5.4 per cent on February 13, following the group's revision of its revenue growth target to 15-20 per cent for the next fiscal year, which is a significant drop from the earlier target of 40 per cent," Deepak Jasani, Head of Retail Research at HDFC Securities, said.

In a statement on Friday, Moody's Investor Service said that it has revised the rating outlook on four Adani Group companies to negative from stable after a significant and rapid decline in market value following a report by US-based short seller Hindenburg Research.