Adani Group Stocks Tumble: Mutual Funds with High Exposure Amid Bribery Charges

Adani Group stocks tumbled on November 26, 2024, after Fitch Ratings put some group bonds on negative watch. This follows accusations by US authorities of a $265 million bribery scheme to secure renewable energy contracts, implicating Gautam Adani, Sagar Adani, and associates.

Ripple Effects of the Bribery Allegations

The fallout of these accusations is evident worldwide:

• Kenya: President William Ruto cancelled a multibillion-dollar airport modernization deal with Adani.
• France: Total Energies halted fresh investments in Adani-linked projects pending clarity.
• India: The Andhra Pradesh government is reconsidering an Adani-linked power supply deal.
• Fitch Ratings: Placed Adani bonds on negative watch, raising concerns for investors.

Impact on Mutual Funds

Several mutual funds have substantial holdings in Adani Group stocks. These include Adani Ports, Adani Power, Adani Energy Solutions, Adani Enterprises, and their cement subsidiaries like ACC and Ambuja.

Mutual Funds Having Highest Exposure to Adani Group Stocks

Data as of October 31, 2024. 

What This Means for Investors

Mutual fund investors should carefully evaluate their portfolios. While Adani Group stocks have been high-growth in the past, ongoing allegations could lead to price volatility, regulatory action, and downgraded ratings, impacting fund performance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.