Adani fiasco pushes India out of top 5 countries by market capitalisation

The Hindenburg report has wiped out more than Rs 5.5 lakh crore from Adani Group's market cap and pushed Gautam Adani to the 11th position from the third place in the global rich list. But the rout among most Adani Group firms except for Adani Enterprises and Adani Ports, also hit Indian markets, which closed on a flat note after modest losses on Tuesday morning. The loss of value among other Indian stocks as a consequence of the Adani fiasco, has pushed India out of the list of top five nations by market cap.

As of now India stands at the sixth position after France, in terms of market value, as the economy was hit by a $137 billion loss in January. About 50 per cent of this massive loss was because of the erosion in value among Adani Group's listed entities. The contribution of Adani's firms in India's stock market capitalisation also dropped from 7.2 per cent to 5.1 per cent.

Although the global market capitalisation has surged in the first month of 2023, the value of India's stock markets has dipped to the lowest levels since August 2022. The Adani Enterprises FPO on the other hand was fully subscribed, but most of it was thanks to FIIs and QIBs including ultra high net worth families, while retail investors only bid for 12 per cent of shares offered to them.