Adani Ports, Ambuja most vulnerable if Adani Group rout extends

The most-liquid stocks controlled by the Adani Group, Adani Ports and Special Economic Zone Ltd. and Ambuja Cements Ltd., are also the most vulnerable in the event of an extended selloff in the diversified conglomerate’s shares.

That’s the view from Bloomberg Intelligence analyst Nitin Chanduka, who said the two stocks are also widely-owned by onshore funds.

“Having a large chunk of shares held by a few funds reduces the effectiveness of the public float, leaving stocks prone to asymmetric volatility,” according to Chanduka.

Shares of all 10 listed companies related to the Ahmedabad-based group with interests from energy to infrastructure and media declined after US investor Hindenburg Research LLC said it was shorting some of them.

Ambuja Cements, bought by Adani last year from Holcim Ltd., fell the most with a slide of as much as 9.7%, while Adani Ports and ACC Ltd. both lost 7.3%. Adani Group has eight stocks included in the MSCI India Index, with two of them also part of India’s key NSE Nifty 50 Index.

This story has been published from a wire agency feed without modifications to the text.

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