Adani Group Stocks: Finance Secretary T V Somanathan said on Friday that the panic in the stock market due to the sharp fall in Adani Group’s shares is just a ‘storm in a tea cup’ from the macro-economic point of view. ‘A storm in a tea cup’ is an idiom which means to show anger and concern over a matter which is not important.
Somanathan, the senior-most official of the Finance Ministry, said in an interview to PTI-language that India’s public finance system is very strong and the ups and downs of the stock market are not a matter of concern for the government. He said that independent regulators are there to take necessary steps in this regard.
When asked about the possible impact of fraud allegations on Adani group companies on banks and insurance companies, the Finance Secretary said, “There is nothing to worry about the financial stability of depositors or policyholders or any shareholder of these companies.” Is. The share of any one company is not such that it can make any impact on the macro-economic level. So there is nothing to worry from that point of view.
The valuation of Adani group companies has fallen by $100 billion in the last ten days. Shares of Adani Enterprises, the group’s flagship company, have tumbled 70 per cent from their high in December.
Somanathan also ruled out any possibility of the sharp fall in Adani Group’s shares having any impact on the revised estimates of disinvestment collections. He said, ‘It is a case of walking on an edge. Those interested in stock market and investment are keen on it. But this is not an issue from the macro-economic point of view. In our opinion this is a complete non-issue. From the macro-economic point of view, it is a storm in a tea cup.
He said that the volatility in the stock market prices is nothing to worry about and this phenomenon is seen in all the stock markets. He said, ‘The government’s concern is to create the right investment climate and build a well-regulated financial market. Along with this, transparency and smooth running of the work also has to be ensured.
In a report by Hindenburg Research, there has been continuous selling ever since the Adani group was accused of fraud to increase the prices of shares. During this, Adani Enterprises has suffered the most.
