Selloff in Adani Group Stocks Wipes Out $47 Billion in Market Value

[mahatmakanejeeves]

MARKETS

Selloff in Adani Group Stocks Wipes Out $47 Billion in Market Value

Hedge-fund manager Bill Ackman expresses support for short seller Hindenburg’s report

By Weilun Soon and Shan Li
https://twitter.com/soonweilun
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https://twitter.com/ByShanLi
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Jan. 27, 2023 8:03 am ET

Shares of several companies linked to India’s richest man, Gautam Adani, fell sharply Friday, losing tens of billions of dollars in market value after a U.S. short seller’s allegations of fraud at his sprawling conglomerate continued to unnerve investors.

Five of the seven listed Adani Group companies ended the day 16% to 20% lower, and the other two fell by the maximum 5% permitted by India’s exchanges for their stocks. The market’s benchmark Nifty 50 index, which includes two Adani companies, fell to a three-month low.

{paywall}

[Warpy]

2. It's why most of us were clapping and chhering when Reddit

stock players waited for hedge funds to load up on rented Game Stop shares in order to short them, the Reddit crowd buying them and driving the share price up. I don't know if they managed to kill off any hedge fund vultures, but I know they came really close.

The big guys at the top will occasionally still short stock, Wall Street being a casino for rich men more than anything else. What needs to be stopped is shorting stock a person or company doesn't own. Leasing stock from long term holders in order to play games with it is what needs to be illegal.

(Yes, I'm in the casino, I inherited it. However, I'm in it for the income, something dinned to my little head when I was a little kid, and so far that's worked out. It doesn't matter what the per share price is, the income stays roughly the same)