The Indian stock market experienced a significant downturn on Friday, as the NSE Nifty 50 Index dropped to its lowest point since October 21st, largely due to a sharp decline in the value of Adani Group’s empire.
This decline, which resulted in a loss of $50 billion, was triggered by a scathing report issued by US short seller Hindenburg Research on January 24th.
Hindenburg Research’s report made wide-ranging allegations of corporate malpractice at companies controlled by Asia’s richest man, Gautam Adani, causing shares in Adani Enterprises Ltd., the flagship company of the Adani Group, to fall as much as 20%. Adani Ports and Special Economic Zone Ltd. also saw a significant decline, falling as much as 25%.
The Nifty 50 Index’s move signals a souring sentiment for Indian assets, as investors react to the report’s accusations. Adani Group’s companies are planning to release a detailed response to the report, which they have labeled as “bogus,” according to bondholders who participated in a conference call with Adani executives.