In April 2025, Indian mutual funds significantly reduced their stakes in Adani Group companies, selling shares worth over ₹1,160 crore in eight listed entities. This was a significant increase from March, when only four Adani companies saw a reduction in mutual fund stakes.
Key Divestments by Mutual Funds :
Adani Enterprises: The flagship company experienced the largest sell-off, with mutual funds divesting shares worth over ₹346 crore.
Adani Energy Solutions: Holdings decreased by approximately ₹302 crore.
Ambuja Cements: Mutual funds reduced their stake by around ₹241 crore.
ACC: Saw share sales amounting to about ₹124 crore.
Adani Ports & SEZ: Experienced a more modest exit of around ₹7.7 crore.
Adani Total Gas: Faced a reduction of ₹3.43 crore in mutual fund holdings.
Notable Exception: Adani Power
Contrary to the broader trend, mutual fund holdings in Adani Power saw an increase, with fund managers raising their investments by Rs 102 crore in April.
Possible Reasons Behind the Sell-Off :
1. Valuation concerns: Some investors may view Adani Group stocks as overvalued, leading to reallocation of funds.
2. Regulatory : Ongoing investigations and reports related to the Adani Group could weigh on investor sentiment.
3. Portfolio rebalancing: Fund managers regularly adjust portfolios to align with investment strategies and risk assessments
Conclusion :
Significant divestment by mutual funds suggests that they have a cautious stance towards Adani Group stocks. Retail investors often track institutional investment patterns; thus, this trend can influence broader market sentiments. However, increased investment in Adani Power suggests that fund managers are selectively evaluating opportunities within the group
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions.
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