Chaotic scenes in both houses of India's parliament lead to their adjournment as some MPs demand an inquiry after a dramatic meltdown in the stock market values of Indian billionaire Gautam Adani's companies.
abc.net.au/news/indian-parliament-adjourned-amid-adani-crisis/101931080Financial contagion fears have spread in India as the Adani Group's crisis worsened, with ratings agency Moody's warning the conglomerate may struggle to raise capital and S&P cutting the outlook on two of its businesses.
Adani Group, one of India's top conglomerates, has rejected the criticism and denied wrongdoing in detailed rebuttals, but that has failed to arrest the unabated fall in its shares.In the latest sign of the crisis widening, India's ministry of corporate affairs has begun a preliminary review of Adani Group's financial statements and other regulatory submissions made over the years, two government officials told Reuters.
"These adverse developments are likely to reduce the group's ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years. We recognise that a portion of the capex is deferrable," Moody's said. Adani Enterprises shares closed 1.4 per cent higher, after earlier slumping 35 per cent to hit their lowest since March 2021. That low took its losses to nearly $US33.6 billion since last week, a 70 per cent fall.
India's divestment secretary Tuhin Kanta Pandey told Reuters that Life Insurance Corp shareholders and customers should not be concerned about its exposure to the Adani Group.
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