Shares of Gautam Adani controlled companies fell for the third consecutive day despite the National Share Depository Ltd (NSDL) clarifying that the freezing of the accounts of the three foreign funds was not related to the Adani Group but to a June 2016 case. Shares of Adani Transmission Ltd. tanked 5 percent to close at 1374.10. Similarly, Adani Total Gas and Adani Power also witnessed high selling pressure and fell 5% to close at 1394.35 and 127.25 respectively.

The massive sell-off puts an end to a spectacular run-in of shares of Adani Group companies, which had added about $40 billion to the billionaire's fortune this year through Friday, making him Asia's second-richest person. Based on Tuesday's closing stock prices, his net worth is $71.5 billion.

Sensex
A stock broker reacts to the falling shares in MumbaiCredit: Reuters

National Securities Depository Ltd. froze the accounts of Albula Investment Fund, Cresta Fund, and APMS Investment Fund, according to an Economic Times report published on Monday. However, the Adani group termed the report "blatantly false" and issued a second statement on Tuesday, claiming a correspondence from India's national depository stating that the three funds' demat accounts are "suspended", adding confusion.

Multifold jump in Adani's share since last year

It's worth noting that some of Adani's publicly traded equities have increased in value by more than sixfold since the beginning of 2020, owing to predictions that Adani's big infrastructure drive will pay off as India attempts to recover from its virus-ravaged economy. MSCI Inc. added three additional Adani equities to its India benchmark index, bringing the total number of Adani stocks to five. This means that any fund that is linked to this index will have to invest in these stocks.

Gautam Adani
Gautam AdaniTwitter

Adani Transmission's stock had risen 582 percent and Adani Total Gas's stock had risen 975 percent in the last year as of June 15. Despite the fact that these equities struck the lower circuit on Monday and Tuesday, they continue to rise. Adani Enterprises, the group's flagship company, has seen its stock soar 952 percent in the last year. During the same time frame, the benchmark Sensex increased by 57%. The other three Adani companies saw their stock prices rise as well, though by a smaller percentage. While Adani Ports' stock has increased by 123 percent in the last year, Adani Green Energy has soared by 233 percent, and Adani Power has jumped by 266 percent.