MC A10 Index slips nearly 2% due to selling in energy stocks

The MC A10 index captures the real-time price movement in all 10 Adani group stocks.

MC A10 index – a sentimeter of Adani Group stocks – continued to plunge on February 23. The index slipped further by 1.58 percent to 30.81, owing to the selling pressure in the energy stocks of the Group. The index fell for the fifth straight day.

The MC A10 index captures the real-time price movement in all 10 Adani group stocks. The individual companies in A10 have weights in proportion to their total market cap.

Adani Green Energy, Adani Power, Adani Total Gas and Adani Transmission – each of them declined 5 percent, thereby dragging the index lower. Buying in Adani Ports provided some support.

The selling comes amid reports that yields on overseas bonds of the Adani Group continued to rise since the Hindenburg Research report flagged concerns over the group’s high debt level and accounting irregularities, suggesting a sell-off of the securities in the secondary market.

The yield on the overseas bond of Adani Electricity Mumbai Infra rose to 9.2261 percent on February 22 from 7.2451 percent on January 24, according to Bloomberg data. Adani Green Energy’s bond yield rose to 19.9714 percent from 7.4802 percent on January 24.

Adani Ports & Special Economic Zone and Adani International Container Terminal bond yields rose to 9.201 percent and 6.943 percent, respectively, from 6.7 percent and 5.693 percent before the Hindenburg report came out a month ago.

The Adani Group has redemptions due to the tune of Rs 90,000 crore in the next few years, including overseas bonds and commercial paper, according to Prime Database.