Adani indictment rocks equities and bonds alike
Subscribe to enjoy similar stories. Adani group executives’ indictment in a bribery case in the US roiled the Indian markets, with the conglomerate’s stocks taking a massive hit in the ensuing selloff. The turbulence followed an announcement from the US Attorney’s Office in New York in the early hours of Thursday (India time), indicting group chairman Gautam Adani and seven senior executives.
The allegations? A $250 million (around ₹2,110 crore) bribery scheme aimed at influencing Indian officials to secure favourable solar power contracts for Adani Green Energy Ltd and New Delhi-based Azure Power Global Ltd. The Adani group dismissed the allegations. “The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," it said in a statement.
“All possible legal recourse will be sought." But the news triggered a selloff in the Indian markets. On Thursday, the Nifty 50 of the National Stock Exchange (NSE) hit an over-five-month low at 23,349.90 points. The benchmark closed 0.7% lower at 23,349.90 points.
The BSE Sensex fell 0.5% to close at a five-month low of 77,155.79 points. Adani stocks bore the brunt of the selling. Adani Enterprises Ltd and Adani Green Energy Ltd led the plunge, tumbling 23% and 19%, respectively.
Other group companies weren’t spared either as shares of ACC Ltd, Adani Ports and Special Economic Zone Ltd (APSEZ), Adani Power Ltd, Ambuja Cements Ltd, Adani Total Gas Ltd, Adani Energy Solutions Ltd, Sanghi Industries Ltd and Adani Wilmar Ltd shed between 8% and 13% on the NSE. Adani group companies eroded investor wealth, as measured by market capitalization, by more than ₹2.24 trillion. Also read | Adani bribery
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