India election: Gautam Adani suffers US$25 billion wealth wipeout from Modi letdown

All 10 Adani Group stocks plummeted, wiping out almost US$45 billion in group market value. It was the biggest single-day rout the US$189 billion conglomerate has faced, dwarfing the hit from Hindenburg Research’s allegations of corporate malfeasance over a year ago.

On Monday, bullish exit polls for Modi had boosted the Adani Group’s market value by US$20 billion.

Adani’s rapid descent from one of the year’s biggest wealth gainers is a stark reminder that investors see his conglomerate’s fortunes as being tied to Modi’s mandate as India’s leader. The Adani Group and its founder have maintained that they have no improper relationship with the government and can execute their ambitious infrastructure projects under any administration.

Nevertheless, Adani knows he’s a heatscore in India’s election, with opposition leaders frequently invoking his name at campaign rallies and Modi himself unexpectedly accusing his rivals of receiving illegal cash from the billionaire at one point in the long campaign.

A coterie of advisers have asked the tycoon to avoid posting anything on social media about initial electoral results, said a person familiar with the matter, counselling him to say quiet until the new federal government is formed.

The Adani Group did not immediately respond to a request for comment.

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Adani Ports and Special Economic Zone Ltd. and Adani Energy Solutions Ltd. led the pack’s losses, with shares plunging 21 per cent and 20 per cent respectively. Flagship Adani Enterprises Ltd. nosedived 19 per cent on Tuesday.

While this was the steepest single-day stock drop for the Adani group, overall losses in the wake of the Hindenburg