The BSE Sensex fell about 0.5% to close at 77,156 on Thursday, its lowest since mid-June, weighed down by a 13.5% plunge in shares of Adani Group companies following US bribery allegations against Gautam Adani. According to US authorities, more than $250 million in bribes were promised to Indian Government officials to secure solar energy contracts. State-owned companies such as NTPC and lender SBI were also among the top losers, down 2.7% and 2.6%, respectively, due to their exposure to the conglomerate. On the other hand, the biggest gains were recorded by Power Grid Corp (+3.4%), UltraTech Cement (+1.4%) and Tata Steel (+0.6%). The information & technology sector rose about 0.5%. Meanwhile, market sentiment was dented by lingering concerns over weak earnings, geopolitical tensions, and stretched valuation.
Adani Group Stocks: Several Adani Group shares, including those of the flagship firm Adani Enterprises, suffered massive losses and hit their lower circuits in early trade on Thursday, November 21. This was after Gautam Adani had been indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme.
According to US authorities, more than $250 million in bribes were promised to Indian Government officials to secure solar energy contracts.
"A five-count criminal indictment was unsealed today in federal court in Brooklyn charging Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain, executives of an Indian renewable-energy company (the Indian Energy Company), with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from US investors and global financial institutions on the basis of false and misleading statements," said a statement from US Attorney's Office, Eastern District of New York.
Adani Group denied the allegations and said it will seek all possible legal recourse.
"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.
