Earlier on Friday, Shares of Life Insurance Corporation (LIC) saw a dip of over 1%, Investor sentiments were negatively affected due to concerns about the Adani Group’s impact on LIC, which resulted in a decrease in LIC’s stock price. This decline was consistent with the overall weakness of the market.
At the end of trading, LIC’s stock was priced at Rs 585, which was slightly higher than its all-time low of Rs 582. Meanwhile, the Adani Group’s shares experienced a continuous decline, leading to a decrease in the valuation of LIC’s investment in the group.
According to Adani Group insiders, LIC had made some profits in January when the Adani Group’s stock prices were close to their 52-week highs. However, LIC has not yet released any official statement regarding the profit or loss status of its investment in the Adani portfolio.
Based on the latest disclosures made to the Bombay Stock Exchange (BSE), LIC’s largest investment was in Adani Ports & SEZ, in which it held a 9.1% stake. Additionally, it had stakes ranging from 1.25% to 6.5% in six other Adani Group companies. Over the past month, LIC’s stock has decreased by almost 17% in value.
7 out of 10 Adani Group stocks closed red on Friday. Four of these stocks, namely Adani Total Gas, Adani Green Energy, Adani Transmission, and Adani Power, reached their lower circuit limit of a 5% decline. Adani Enterprises, the flagship company, also closed 5% lower, but circuit breakers do not apply to this stock because it is eligible for derivatives trading. Adani Wilmar’s stock closed with a 3.3% decrease, while NDTV’s stock fell by 4.1%. The remaining two stocks, Ambuja Cements and Adani Ports & SEZ, closed with an increase in price, with Ambuja Cements closing 2.4% higher and Adani Ports & SEZ closing 1.2% higher, while ACC remained unchanged.
In response to a parliamentary query earlier this month, the government revealed that LIC had invested Rs 30,127 crore in Adani Group companies. The disclosure also included information that the market value of this portfolio was Rs 56,142 crore at the end of trading hours on January 27th.
Adani Total Gas experienced a 5% circuit-breaking close on Friday, which brought its total loss in value to almost 81%. Taking into account its decline from its 52-week high level, which was recorded in April 2022, the stock has fallen by 84%. Adani Green Energy and Adani Transmission are also approaching Hindenburg’s “85% downside” mark, with Adani Green Energy losing almost 75% in the last month and Adani Transmission down by 74%.
The decrease in the Adani Group’s stock prices has resulted in the loss of Rs 12 lakh crore, or approximately $146 billion, in market value over the past month. On Friday, the group’s combined market capitalization was down to Rs 7.2 lakh crore, compared to Rs 19.2 lakh crore on January 24.