Gautam Adani: Adani Group’s case left behind, bumper earning opportunity coming, stock market preparing to break records – indian stocks are moving beyond the adani group’s woes
According to a Bloomberg survey, most fund managers believe that strong demand is driving earnings of companies and there is every possibility of a rally in the stock market. 16 out of 22 fund managers said they are confident of a rally in Indian stocks despite the Adani episode. Only two fund managers expect further downside while four remain neutral. 17 fund managers said that Sensex and Nifty will end the year much above their current levels. Most were of the view that the Adani episode would not impact Prime Minister Narendra Modi’s pro-growth political agenda.
Adani and the Indian market
Rakhi Prasad, investment manager at Mumbai-based Alder Capital, said the Adani case and the Indian market are two different things. The problem of selling Adani shares is not an India problem. This is because the governance standards in many Indian companies are of global standards. This type of problem can happen in many countries. America’s short selling firm Hindenburg Research issued a negative report. Due to this, Adani Group’s shares fell drastically and their market cap was reduced by more than $ 130 billion. Due to this, questions were being raised on the stock market of the country.
Well-known investor and co-founder of Mobius Capital Partners Mark Mobius said, now I have become more bullish. Now the attention of investors from all over the world has turned towards India and they feel that Adani’s case is an exception. He said that he wants to buy tech, infra and healthcare stocks in India. He wants to invest more money in India because long term future of India is very good. Foreign investors were apprehensive in the initial days after the Hindenburg report, but now their fear is coming to an end. They are now increasing their exposure to the Indian market.
Adani Group News: Adani Group said- Balance sheet of companies very good, investors will get good returnsto make a record
According to Bloomberg Intelligence, Adani Group’s combined capital expenditure in the next two years could be around $12 billion, which is only 0.3% of India’s GDP. The working, liquidity and debt position of many large companies in the country is much better. These include Tata, Reliance and Infosys. No stock of Adani Group is included in 30 Sensex stocks. It reached an all-time high in December and is now just four per cent away from that. Similarly, the Nifty 50 is also about five per cent away from its peak. Two companies of Adani Group are included in this index. The country’s market has matured over time and is not dependent on any single group.
