India reclaims fifth place among world stocks as Adani claws back

Bloomberg

India has reclaimed fifth place among the world’s top equity markets by value after being briefly usurped by France during a selloff of Adani Group shares.
India’s market capitalisation stood at $3.15 trillion on February 10, inching back above France with the UK retaining seventh place, according to data compiled by Bloomberg that shows the combined value
of companies with a primary
listing in each country.
The outlook for earnings growth helped revive the appeal of the South Asian country’s equities, which have outperformed most global peers for the past two years.
Still, the total value of India’s market was about 6% lower than January 24, the day before the selloff in Adani stocks began. While steps by the group to restore investor confidence have helped its shares reclaim some value, they remained $120 billion lower than before the rout.
After withdrawing funds from Indian equities since November, foreign investors were net buyers during two of seven sessions this month through February 9. The purchases followed the government’s plan at the start of February to increase capital spending, while the central bank last week signalled a slower pace of the interest rate
increases.
As the latest quarterly reporting season unfolds, analysts estimate earnings per share at MSCI India companies will increase 14.5% this year. That’s similar to expectations for China and better than most major markets, data compiled by Bloomberg Intelligence show. By contrast, the EPS of US firms will probably grow by 0.8%, with the reading for European counterparts expected to be
almost flat.

Adani to halve revenue growth target
Most Adani Group stocks declined after people familiar with the matter said the conglomerate has cut its revenue growth target in half and plans to postpone new capital expenditure in the aftermath of a bruising short seller attack.
Adani Green Energy Ltd., Adani Total Gas Ltd., and Adani Transmission Ltd. were down by the 5% limit. Flagship Adani Enterprises Ltd. swung between gains and losses.
The group will now aim for revenue growth of 15% to 20% for at least the next fiscal year, down from the 40% growth previously targeted, said the people, who didn’t want to be named as the discussions are private. Capital expenditure plans will also be reduced, they said, as the group prioritises financial health over aggressive expansion.
Moody’s Investors Service cut its outlook for Adani Green Energy and three other companies backed by Indian tycoon Gautam Adani, citing the plunge in the conglomerate’s stock market value.