We did not push Adani scrips among small investors: Brokers

NAGPUR: Brokers, who got calls from harried investors after the Adani Group shares fell, said they always refrained from recommending the stock. The brokers TOI talked to said they always felt that the stocks were overpriced and were not among the scrips that could be recommended to the typical small investor.
Chartered accountant and capital market analyst Kailas Jogani said brokers have always regarded this as a fancy stock and have not encouraged the small investor to invest.However, a section of investors of this category who have parked their funds in stocks like LIC or banks that have an exposure in Adani Group will be indirectly affected.

“Investors did call asking for advice like whether they should buy more shares as the rates are falling so that the investment value can be averaged out. We have asked them to wait till there is clarity on the matter,” said Anuj Badjate of Badjate Stock Trading.
He also confirmed that the brokers did not aggressively advice in investing in the group’s stocks.
G V Iyer of Apex Investments said this was not the top priorities of the brokers in terms of advice. Although there may be some of the investors who parked money in the shares purely for speculation rather than going by the fundamentals.
Sources said there were some investors who also invested using borrowed funds. “I know of a businessman who had borrowed funds to invest in the stock when the Adani Enterprises’ stock was at around Rs 4,000. Now, its down to over Rs 2,869,” said a broker.
Chartered accountants Julfesh Shah said he invested in the shares going by the hype created about Gautam Adani’s wealth and the company’s presence in all the leading sectors. Now the profitability of the investment has come down by 60%. A further decline in share prices can put him in losses, says Shah.
Another financial adviser said he had come across investors who had sold the shares around a fortnight ago earning huge profits.