Three Adani Group stocks lose 5% each despite clarification on reports of freeze on foreign funds

All stocks of the Adani Group, except for two, were making losses on the Bombay Stock Exchange on Tuesday afternoon. This was despite a clarification from the National Securities Depository Limited that the accounts of three foreign funds, holding more than Rs 43,000 crore worth of the group’s shares, are “active” and not frozen as was reported on Monday.

At 2 pm on Tuesday, Adani Green Energy and Adani Enterprises were gaining 2.81% and 2.49%, respectively. However, Adani Ports was 0.23% in the losses, while three other stocks – Adani Power, Adani Transmission and Adani Total Gas – were locked in 5% lower circuit limit on the BSE.

Exchanges set lower and upper circuits, in percentage terms of price band of stocks, within which they can be traded. Trading is halted on a particular stock when the price breaches either of the limits.

The downturn in Adani Group stocks got triggered on Monday after The Economic Times reported that three foreign funds – Albula Investment Fund, Cresta Fund and APMS Investment Fund – which together own over Rs 43,500 crore worth of shares in four Adani Group companies, were frozen by the National Securities Depository Limited.

An account freeze means the funds would not be able to sell any of the existing…

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