Markets closed for the weekend. Time to take a deep breath. Yesterday, "After a tumultuous past few days that almost halved value of the Adani group, embattled tycoon Gautam Adani-led conglomerate had some pressure eased on Friday as two global rating firms stuck with their calls on its credit profile and its French partner backed its investments in the group firms." Stock market indices rose. "The Nifty rose 243.65 points, or 1.38 percent, to 17,854.05. The Sensex climbed 909.64 points, or 1.52 percent, to 60.841.88."money-control.com. "The flagship Adani Enterprises made the worst intraday fall in history - 35 percent - then recovered over 50 percent from the day's lows to close 1.25 percent higher on BSE. Adani ports closed up about 8 percent." "The Centre...moved to soothe sentiments of investors, with finance minister Nirmala Sitharaman saying the exposure of banks and financial institutions to the Adani Group was well within permissible limits." TOI. "She added that investor confidence in India would remain high as the markets were well-regulated." However, "Financial contagion fears spread in India on Friday 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." ET. "The listed Adani firms now have a combined market value of $107.5 billion, versus $218 billion before the report." In order to avert margin calls on money borrowed against shares, "Adani Group Chairman Gautam Adani is in talks with lenders to prepay and release pledged shares as he seeks to restore confidence in the financial health of his conglomerate, Bloomberg News reported." Reuters. Shares are risky instruments where the holders have to swallow any losses but bondholders are assured payment in full. "Citigroup Inc's wealth arm has stopped accepting securities of Gautam Adani's group of firms as collateral for margin loans as banks ramp up scrutiny of the Indian tycoon's finances following allegations of fraud by short seller Hindenburg Research." Mint. Credit Suisse "has assigned a zero lending value for notes sold by Adani Ports and Special Economic Zone, Adani Green Energy and Adani Electricity Mumbai Ltd." In all this cacophony, intentional or otherwise, about Indian markets, Adani's offshore dealings through his brother Vinod Adani's shell companies in Mauritius have been conveniently ignored. "Hindenburg cited examples of a $253 million loan from a Mauritius entity where Vinod Adani serves as a director and another example of an investment of $692.5 million from a Mauritius entity controlled by the head of the Adani Group's private family investment office." Prime Minister Narendra Modi promised to bring back illicit funds held in Swiss Banks, TIE, and inflicted enormous suffering on citizens by suddenly withdrawing all Rs 1000 and Rs 500 notes from circulation to get rid of black money. ET. But the government has refused to comment on Adani crisis so far. ET. Mr Adani has denied friendship with Mr Modi as "baseless" allegations. HT. However, he has not commented on his relationship with Chinese national Chang Chung Ling who is said to have been part of the Augusta Westland scandal. Is there a cover up afoot? After all, our motto is 'sab chaltaa hai' (everything goes).
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