TMS Ep364: Adani group, Indian ports, defensive stocks, fault lines

After the Hindenburg Research’s critical report on Adani group, global credit rating agencies have started to recalibrate their stance on the conglomerate’s assets. Contracts awarded to its group companies are also under the scanner. So will the dark clouds hovering over the group grow darker in the days ahead? Or 60-year-old Gautam Adani -- who was the world’s third richest man until a few days ago -- will be able to overcome this crisis?

Adani group stocks made a comeback on Tuesday. Adani port -- which is about to declare its Q3 results-- also surged over 8% in the early trade. The conglomerate operates India’s largest private port in Gujarat’s Mundra. India has 13 big ports now. But despite all the progress, big ships continue to evade Indian ports. Why is that so? Why do big ships not dock at Indian harbours? And does it have any impact on trade?

Equity markets, meanwhile, have remained range-bound, with the NSE Nifty index down nearly 2 per cent. Amidst this volatility, defensive pockets like Nifty FMCG and IT indices have outperformed frontline indices. Analysts, therefore, suggest investors to rotate from high beta stocks to select defensive plays due to an uncertain roadmap ahead.

After the financial markets, let us move on to a tragedy which has struck part of Turkey and neighbouring Syria. At least 5,000 people have lost their lives after three devastating earthquakes shook the region which sits on a well-known fault line, the Anatolia tectonic block. But what is a fault line? Let us understand it in this episode of the podcast and more.