Mutual funds have started consistently trimming their stake in Adani Group companies, indicating a possible shift in sentiment among institutional investors. In April alone, mutual funds sold Adani Group shares worth more than ₹1,160 crore across eight listed entities, marking a significant reduction in exposure.
Mutual funds’ interest in Adani Group is cooling down
According to April data, seven out of eight listed Adani companies witnessed a decline in mutual fund shareholding. This is a noticeable jump compared to March, when only four Adani companies saw mutual fund outflows. This trend signals a sustained and cautious stance by fund managers towards the conglomerate.
Adani Enterprises sees the biggest selloff
The largest divestment was recorded in Adani Enterprises, the flagship company of the group. Mutual funds sold shares worth over ₹346 crore in April, making it the most trimmed stock in the portfolio.
Following Adani Enterprises, Adani Energy Solutions and Ambuja Cements also saw significant sell-offs. Mutual funds reduced their stake by approximately ₹302 crore in Adani Energy Solutions and ₹241 crore in Ambuja Cements.
Other group companies also impacted
The selling spree continued across other group firms. ACC witnessed share sales of about ₹124 crore, while Adani Ports & SEZ saw a more modest exit of around ₹7.7 crore. Adani Total Gas too faced a cut, with mutual funds selling ₹3.43 crore worth of shares.
Adani Power bucks the trend
Interestingly, Adani Power was the only Adani Group company to witness buying activity from mutual funds in April. Fund managers increased their exposure by ₹102 crore, though the overall sentiment across the group remained muted.
What this means for the Adani Group and investors
The gradual pullback by mutual funds reflects a more conservative approach towards the Adani Group, possibly driven by market dynamics, valuation concerns, or broader investment strategy adjustments. The trend of consistent mutual fund selling may impact investor perception in the short term, especially for retail investors who often track institutional moves closely.
As mutual funds continue to reassess their positions, the coming months will be crucial to watch whether this selling momentum continues or stabilizes. For now, April has clearly marked a major month of mutual fund exits from Adani Group stocks.
