Adani group stocks took a beating for a second straight session on Friday, falling up to 20 per cent and losing over Rs 4.17 lakh crore from the combined market valuation of listed firms after the US-based investment research firm Hindenburg Research made damaging allegations.

Shares of Adani Total Gas plummeted 20 per cent, Adani Transmission tumbled 19.99 per cent, Adani Green Energy plunged 19.99 per cent and Adani Enterprises tanked 18.52 per cent on the BSE.

Also, Adani Ports and Special Economic Zone fell 16.03 per cent, Adani Wilmar dipped 5 per cent and Adani Power declined 5 per cent.

Ambuja Cements tanked 17.16 per cent and ACC fell 13.04 per cent.

In the broader market, the 30-share BSE benchmark tumbled 874.16 points or 1.45 per cent to settle at 59,330.90.

In two days, the Adani group firms have lost a whopping Rs 4,17,824.79 crore from their market valuation.

The market valuation of Adani Total Gas plummeted Rs 1,04,580.93 crore, while that of Adani Transmission eroded by Rs 83,265.95 crore.

Adani Enterprises market capitalisation (mcap) fell by Rs 77,588.47 crore, Adani Green Energy lost Rs 67,962.91 crore and Adani Ports (Rs 35,048.25 crore).

The market valuation of Ambuja Cements declined by Rs 23,311.47 crore, Adani Power by Rs 10,317.31 crore, ACC by Rs 8,490.8 crore and Adani Wilmar by Rs 7,258.7 crore.

Banking counters and Life Insurance Corporation of India (LIC) also faced heavy drubbing amid concerns over their exposure to the Adani group firms.

Bank of Baroda tumbled 7.36 per cent, State Bank of India tanked 5.03 per cent, Bank of India declined 5.63 per cent, Punjab National Bank fell 5.31 per cent and Central Bank of India dipped 4.03 per cent on the BSE.

Shares of LIC fell 3.45 per cent.

The sharp slump in the Indian market was triggered by an unfavourable research report on Adani group companies. This is also affecting the banking stocks, especially PSU banks due to their high exposure to the group, Vinod Nair, Head of Research at Geojit Financial Services, said.

According to him, FIIs’ cautious stance ahead of the Union Budget and FOMC (Federal Open Market Committee) meetings also fuelled the collapse.

Ajit Mishra, VP – Technical Research, Religare Broking Ltd, said, the carnage in the Adani group stocks cascaded across the board and the banking sector faced the maximum pressure.

The Adani Group on Thursday said it is examining legal options to take “punitive action” against Hindenburg Research for its “reckless” attempt to sabotage a mega share sale at the conglomerate’s flagship firm – a statement that the US activist investor responded by saying it stands by its report that alleged “brazen” market manipulation and accounting fraud by the group.

“The maliciously mischievous, unresearched report published by Hindenburg Research on January 24, 2023, has adversely affected the Adani Group, our shareholders and investors. The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” Adani Group’s lead head Jatin Jalundhwala said in a statement.

The report and its unsubstantiated contents were designed to have a deleterious effect on the share values of Adani Group companies as Hindenburg Research, by their own admission, is positioned to benefit from a slide in Adani shares, he said.

“We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises,” he said.

“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research.”

Hindenburg, a US-based investment research firm that specialises in activist short-selling, said on Wednesday that its two-year investigation revealed that Adani Group has “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.

“Indian benchmark equity gauges hit their over three month lows on Friday, dragged by massive selling mainly in Adani group and banking stocks. Adani shares were in the line of fire following the Hindenburg report accusing the group of serious irregularities,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.