After reading Hidenburg’s reports and Adani’s inadequate reply, my confidence with the Indian market is shaken. Here are my quick insights on the Adani collapse: Collapse of Indian EquitiesAdani LeverageEmerging Market Contagion
Collapse of Indian Equities
So far, Guatam Adani has lost more than $58 billion within a span of six trading days. This is the most severe in terms of scale and speed since Bloomberg began tracking billionaires in 2012. For the entire Adani group, the drop in share price has resulted in a $108 billion plunge in a week, marking one of the biggest corporate plunges in India’s history. Bonds issued by the Adani group has also fallen to record lows. For example, Adani Green Energy 2024 USD bonds are now trading at about 60 cents on the dollar. I will not be surprised if the Indian equities drop further in the coming weeks. At the end of...