Tale of the Tape 

Good evening everyone and welcome back to Daily Rip! 

Markets continued to bleed. Nifty hit a 5-month low after a sell-off in Adani Group stocks and rising geopolitical tensions made investors nervous. Midcaps (-0.3%) and Smallcaps (-0.5%) also ended in the red. The market breadth was extremely weak with over 3 stocks falling for every gainer. 

Except for Real Estate (+0.9%) and IT (+0.4%), all the other sectors closed down. PSU Bank (-2.7%) got beat up the most followed by Metals (-2.3%) and Energy (-2%). 

Adani Group stocks got hammered amidst reports of bribery and securities fraud. The conglomerate lost nearly 3 lakh crore in value; the worst single day fall since the Hindenburg report. Check out our top story below for all the deets. 

UPL was up +3% in an otherwise weak market. Telecom operators continue to lose users for a third straight month. More details below. 

Brokerage update. Paytm surged 4% after Bernstein upgraded their target price to Rs 1,000 p/sh; +20% from current level. VI (-3%) was under pressure; Goldman Sachs remains bearish and sees -66% downside. 

Suzlon Energy was locked in a 5% upper circuit for a 4th straight day.

NLC India (+8%) was the top gainer on NSE500. The company will inject Rs 3,700 cr in its renewable energy business. 

Dr. Reddy’s (-1%) Hyderabad API unit received 7 negative observations from the USFDA.  

Godrej Properties will develop a high-end residential project in Kolkata with an estimated revenue potential of Rs 500 cr.

Here are the closing prints:

Stocks
Adani Controversy 2.0!

Adani Group stocks took a major L today after the New York Federal Court charged Gautam Adani and 7 others in a $250 million bribery case!

Adani has been accused of bribing the Indian Govt. officials to secure big money solar energy contracts. The estimated profit from these projects is +$2 billion, according to reports. I know what you’re thinking - if the fraud is committed in India then why is a US court passing the judgment? That’s because Adani and his associates leveraged these deals to raise capital from US investors. Asia’s 2nd richest man, his nephew Sagar Adani and Vneet Jaain, MD & CEO at Adani Green have been found guilty of securities & wire transfer fraud!!! 

These are some pretty serious allegations and could potentially cut them off from the US markets altogether, say experts. PS - Adani Green had to cancel its $600 million bond issue. This can significantly hamper the Adani Group’s ability to raise capital and expand, which is a big NEGATIVE! 

The Adani group released a statement later today denying these allegations. Meanwhile, panicked investors rushed for the exit door. The conglomerate lost 3 lakh crore in market cap; its worst single day fall since the Hindenburg report! Even GQG Partners, the dude who made a killing “buying the dip” last year, said that they are reviewing their holdings. Not a good sign!

Adani Energy Solution, Adani Enterprises and Adani Green tanked between -19 to -23% intraday. Check out their (scary) charts below:

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