Analysis Reveals Impact of Adani Group Share Decline on LIC
The News Caravan Web desk
According to a recent review of the shares of Adani Energy Limited (AEL), the Life Insurance Corporation (LIC) suffered the biggest setback as a result of the decrease in Adani Group shares.
The examination included four consecutive time periods from March 1, 2020, to December 31, 2022, which was before the release of the Hindenburg Report and the ensuing decline in the price of Adani’s stock. An expert commission led by retired Supreme Court justice AM Sapre conducted this thorough investigation.
Overview of the Analysis Periods
The investigation concentrated on the trading trends of AEL shares across the following time frames:
Patch I: March 2020 to August 2020 – LIC as the Biggest Net Seller
Patch I (March 1, 2020, to August 31, 2020); Patch II (September 1, 2020, to September 30, 2020); Patch III (October 1, 2020, to March 31, 2021); and Patch IV (April 1, 2021, to December 31, 2022).
Among these patches, Patch II had the most impact on LIC because it caused it to become the biggest net seller by selling 50 lakh AEL shares. Notably, the main net purchases during this time period were Mutual Funds and Large Foreign Portfolio Investors (FPIs).
AEL share prices increased from Rs 300 to Rs 1,031 during Patch III, which ran from October 2020 to March 2021.
Major FPIs and well-known mutual funds emerged as the leading net buyers during this upswing, jointly purchasing about one crore shares. Several FPIs who purportedly have ties to Adani and who bought shares during this time period have also sparked questions.
AEL share prices significantly increased during the contentious Patch IV, which ran from April 1, 2021, to December 31, 2022, rising from Rs 1,031 to Rs 3,859. The greatest net buyer during this time was LIC, which acquired almost 4.8 crore shares, playing a key role.
On the other hand, during this particular patch, FPIs that were allegedly connected to Adani were among the major net sellers, selling almost 8.6 crore shares.
The results of this analysis shed light on the significant effects of the decrease in Adani Group shares, particularly on LIC, a government-owned business. The complex trading patterns noticed during several patches illustrate the participation of numerous market participants, including sizable FPIs, mutual funds, and contentious companies allegedly linked to Adani.
The market continues to pay close attention to how the Adani Group share price is changing and what it means for stakeholders and investors as these developments’ effects play out.
