GQG Partners Triggers Sell-Off in ITC and Adani Stocks as Dalal Street Reels Under Global Yield Pressures — October 8, 2026

Indian equity markets witnessed intensified selling pressure as marquee boutique investment firm GQG Partners moved to significantly pare down its exposure to Indian corporate heavyweights. A pre-open block transaction worth approximately Rs 9,437 crore in ITC Limited, combined with widespread investor jitters over the Florida-based fund’s persistent retreat from the Adani Group, triggered steep declines across major counters and pulled the Nifty index down amid a severe global yield shock.

The heightened supply from foreign portfolio outflows occurred on a day when domestic equities tracked sharp downturns across global markets, driven by elevated US bond yields and tightening global monetary conditions.

Block Deal Sparks Plunge in ITC

Trading in ITC opened under severe strain after approximately 36.66 crore equity shares—representing around 2.9% of the cigarette-to-hospitality conglomerate's outstanding equity—changed hands in the pre-open block window at an average price of Rs 257 apiece. The counter slid up to 5% to hit a fresh 52-week low, making it the top drag on benchmark indices.

Market participants identified Rajiv Jain-led GQG Partners as the primary seller, describing the trade as a near-complete clean-out of its remaining sizable position. The block was partially absorbed by domestic mutual funds—including SBI Mutual Fund, ICICI Prudential Mutual Fund, Nippon India, Kotak Mahindra, and Aditya Birla Sun Life—alongside an undisclosed foreign long-only fund.

The pre-market transaction followed a regulatory disclosure submitted under Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. The filing revealed that GQG-managed funds had already sold 3,96,85,790 ITC shares via open-market operations between May 2025 and October 5, 2026, pulling their cumulative stake down to 3.17% from 3.48%.

The earlier phased divestment was led principally by the Goldman Sachs Trust II – Goldman Sachs GQG Partners International Opportunities Fund, which cut its holding to 1.69% from 1.95%, alongside smaller liquidations by the GQG Partners International Equity CIT.

Contagion Across Adani Group Equities

The aggressive selling in ITC reverberated across the Adani Group's listed counters, which have historically accounted for one of GQG Partners’ most prominent investment allocations in India. Shares across the conglomerate plummeted between 2% and 7.3% amid market apprehension over potential follow-on institutional sales.

Adani Group Stocks Under Pressure:

• Adani Green Energy: Closed down 7.3% at Rs 1,243.40
• Adani Enterprises: Declined 5.9% to Rs 2,582.50
• Adani Energy Solutions: Shed 4.9% to Rs 1,253.90
• Adani Power: Slipped 4.5% to Rs 188.01
• Adani Ports and Special Economic Zone: Lost 3.3% to trade at Rs 1,692.30

While market observers noted no direct regulatory disclosures indicating fresh Adani sales on Thursday, GQG has executed sustained offloading over recent quarters. Official disclosures showed that GQG offloaded more than Rs 12,000 crore ($1 billion) worth of Adani Group shares during the June 2026 quarter alone.

During that quarter, the GQG Partners Emerging Markets Equity Fund fully exited its visible 1.59% stake in flagship Adani Enterprises, worth approximately Rs 6,200 crore, while trimming positions in Adani Ports to 1.93%, Adani Power to 4.32%, and Adani Green Energy to around 3.8% across combined funds. In late August 2026, GQG also offloaded an estimated 21.92 million shares of Adani Energy Solutions in a closing auction that overwhelmed passive MSCI demand.

Redemption Pressures and Global Macro Strain

Analysts attribute GQG’s widespread unwinding to structural pressures within its own funds rather than an isolated view on Indian corporate fundamentals. GQG Partners faced net client outflows totaling $15.1 billion during the first half of 2026, marking six consecutive months of net redemptions.

Concurrently, a spike in global sovereign bond yields has tightened dollar liquidity and prompted global institutional allocators to de-risk holdings across emerging markets. With high-profile overseas funds forced to liquidate liquid large-cap holdings to meet investor redemptions, domestic institutional inflows face an uphill battle in shielding benchmarks against acute foreign capital outflows.

Tags: ITC Limited Adani Enterprises GQG Partners Nifty 50 Adani Green Energy SEBI