---
title: "Adani stocks are getting no love from India’s money managers"
description: "Money managers in India have continued to trim holdings of Adani Group’s stocks, suggesting concerns about governance remain even as the worst of the rout seems to have passed."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-04-20-adani-stocks-are-getting-no-love-from-indias-money-managers/"
published: "2023-04-20T05:43:49"
lang: "en-ZA"
word_count: 219
---

# Adani stocks are getting no love from India’s money managers

> Money managers in India have continued to trim holdings of Adani Group’s stocks, suggesting concerns about governance remain even as the worst of the rout seems to have passed.

By Bloomberg · Published 20 April 2023, 07:43 SAST

## Key points
- Local fund managers remain wary of Adani stocks despite a recent rebound in market value, with their total exposure now at just 0.9%. Despite the optimism of some big-name investors, local funds have only purchased a small stake in two group entities.
- Local equity mutual funds' investments in Adani Group accounted for only 0.9% of industry assets as of March 2021.
- GQG Partners' Rajiv Jain invested $2 billion to buy stakes in four Adani stocks, causing a rebound of more than $30 billion in the group's market value.
- Indian fund managers have had smaller holdings in companies with governance issues than overseas and individual investors.
- Local funds' overall exposure to Adani has dropped, though some players such as Mirae Asset Investment Managers and HSBC Asset Management India were buyers in March.

## Content

Investments by local equity mutual funds in the group accounted for only 0.9% of the industry’s $182-billion in assets at the end of March, according to data compiled by Bloomberg. That’s down from nearly 2% as of 31 December.

The embattled conglomerate at one point saw $153-billion erased from its market value in the selloff following the release of Hindenburg Research’s scathing report on 24 January. The group has vehemently denied allegations made by the short-seller, and has since trimmed down capital spending for growth and said that its founders have [paid back](https://www.bloomberg.com/news/articles/2023-03-08/adani-tells-investors-all-share-backed-loans-have-been-paid-back) share-backed loans.

Local managers’ continued caution is at odds with the optimism shown by GQG Partners’ star investor Rajiv Jain, who spent nearly $2-billion to [scoop up](https://www.bloomberg.com/news/articles/2023-03-03/gqg-s-adani-ade-in-buy-is-at-57-discount-to-price-of-scrapped-share-sale) stakes in four Adani stocks in early March. The move acted as a catalyst for a rebound of more than $30-billion in the group’s market value.

While Indian funds’ overall exposure has dropped, some players such as Mirae Asset Investment Managers and HSBC Asset Management India were buyers in March. However, shares purchased by them in two group entities totaled less than 700,000, according to data from Nuvama Wealth Management.

A historical analysis by Bloomberg Intelligence in 2021 [showed](https://www.bloomberg.com/news/articles/2021-08-11/india-s-scandal-weary-fund-managers-outperform-foreign-rivals) that local fund managers have had smaller holdings in companies that reported governance issues than overseas and individual investors. **BM/DM**