Ambani, Adani Lose Over $5 Billion in ‘Black Monday’ Rout as India’s Richest Take a Hit

One of the most merciless days for India’s capital markets in almost a year turned out to be April 7. The BSE Sensex plummeted 2,227 points to hit 73,137.90, and the Nifty fell 742.85 points to end at 22,161.60. Both indices shed nearly 3% around closing time. Investors are clearly worried that the intense global trade conflict between the U.S. and its trading partners could trigger a worldwide economic slowdown.

Ambani, Adani See Fortunes Shrink in Hours

Mukesh Ambani, the richest man in India and chairman of Reliance Industries, saw his net worth drop to $88.4 billion after losing a staggering $2.9 billion in one day. He lost it when the company shares sank, along with a number of others, in what appeared to be a broadly based selling job. The steepest drops among Reliance properties seemed to have occurred in the energy sector, but the company's telecom-related holdings probably also played a part.

Right behind him, Adani Group chairman Gautam Adani saw his wealth take a hit to the tune of $2.8 billion, which brings his net worth down to $57.6 billion. Shares of several of Adani's companies, including Adani Enterprises and Adani Ports, were among the worst hit on Dalal Street.

Not only do their losses show the market’s close in deep red, but they also reveal investors’ fears about being highly exposed to sectors like infrastructure, energy, and international trade.

Wealth Erosion Across India’s Billionaire Club

Although Ambani and Adani triggered the decline, other Indian billionaires also had their fortunes take a hit. Savitri Jindal lost $2.3 billion, Kushal Pal Singh saw a decline of $988 million, and Shiv Nadar saw a fall of $902 million. Altogether, the total wealth that has been wiped out from the top five Indian billionaires stands at $9.89 billion, according to the Forbes Real Time Billionaires index.

The major part of the Sensex closed lower, but they managed to escape only Hindustan Unilever, which closed higher. Laggards included name brand stocks we often discuss here, such as Tata Steel, Infosys, and Kotak Mahindra Bank, along with HCL Technologies. Together, those stocks account for a huge sum of money, part of what's called the "breadth" of the stock market. And the "breadth" is that part of the stock market that was selling off yesterday.

Uncertainty Looms, but Fundamentals Remain Intact

Even though there was a selloff prompted by panic, the analysts keep urging calm. They insist India's trade with the US, which constitutes a mere 2% of GDP, could keep the country insulated from the worst of the global tariff storm.

While known for their long-term plays, Mukesh Ambani and Gautam Adani may suffer reductions in fortune due to recent events. Yet, the foundations of their businesses seem solid. Still, if international instability persists, valuations across the spectrum, including those of India’s richest businessmen, could take another hit.