According to the Bloomberg Billionaires Index so far this year, Indian billionaires are leading the way in losses.
That follows a significant selloff in the listed companies of the Adani Group as well as the larger Indian market.
Following a short-seller onslaught, tremendous pressure has been placed on Adani's publicly traded enterprises.
The year 2023 hasn't been going well for India's billionaires so far.
Following a shocking short-seller revelation, there has been a significant selloff in Gautam Adani's publicly traded companies, which is impacting the local stock markets. Adani is the richest man in India.
Since Hindenburg Research, a US short seller, published a damning report last Tuesday alleging "brazen stock manipulation and accounting fraud scheme" at the Adani Group, the market capitalization of the listed companies of the Adani Group has dropped by more than $68 billion. The main company of the group, Adani Enterprises, has seen a market value decline of almost 25% just this year.Adani's net worth has been severely damaged by the downturn; it is down $36.1 billion so far this year, making him the highest loser on the Bloomberg Billionaires Index. The Indian businessman, who was just last week in fourth place, has also dropped out of the top 10 richest people, and is now the 11th richest person in the world.
Hindenburg is doubling down on its first claim, while the Adani Group has been vehemently defending themselves.
Despite the fact that Adani is still the wealthiest Asian in the world, the enormity of the losses in the Indian markets, which have affected other billionaires, can be seen in his wealth wipeout.
Indian billionaires Mukesh Ambani, Radhakishan Damani, and Savitri Jindal, who have lost $5 billion, $2 billion, and $1 billion, respectively, so far this year, are trailing Adani on the Bloomberg Billionaires Index. As a result of declining share prices in the businesses they control significant shares in, their net worth has decreased.
While Damani is the creator of Avenue Supermarts, Ambani is the chairman and largest shareholder of the company Reliance Industries. Both companies' stocks have experienced declines thus far this year.
The majority of the companies in Jindal's steel and power group had lower share prices this year as well.The Adani Group crisis has negatively impacted the South Asian market's overall attitude; India's benchmark index, the Sensex, is down more than 2% so far this year.
According to Shumita Deveshwar, the chief economist for India at macroeconomic advisory TS Lombard, "allegations of fraud at one of India's most valuable conglomerates, the Adani Group, have hastened the decline we expected in Indian equities as foreign investors rebalance their portfolios on China's reopening."
Investors will undoubtedly pay more attention to Indian stocks, said Deveshwar, but a TS Lombard analysis from November 2022 found that India has stronger corporate governance measures than the majority of other emerging economies, including Saudi Arabia, China, and Brazil.
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