The Indian stock market faced a sharp decline today, with key indices closing lower amid a sell-off triggered by fresh allegations against the Adani Group. NIFTY 50 dropped 0.72% to 23,349.90, while SENSEX declined 0.54% to 77,155.79. The downturn was led by Adani Group stocks, which plummeted after US prosecutors accused Gautam Adani and other executives of a $250 million bribery scheme to secure solar energy contracts in India. The indictment includes charges of making false statements, obstructing justice, and violating federal laws, shaking investor confidence. The controversy also impacted Adani’s dollar bonds and raised broader concerns about governance and transparency, influencing market sentiment negatively.
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Market Analysis Today 21st Nov 2024 – Overview
| Index | Price | Change | % Change |
|---|---|---|---|
| NIFTY 50 | 23,349.90 | -168.60 | -0.72% |
| SENSEX | 77,155.79 | -422.59 | -0.54% |
| NIFTY BANK | 50,372.90 | -253.60 | -0.50% |
| NIFTY IT | 41,952.80 | 204.45 | 0.49% |
| BSE SMALLCAP | 52,141.15 | -349.79 | -0.67% |
Top Gainers on NIFTY 50
| Company | Current Price (₹) | % Loss |
|---|---|---|
| Adani Enterprises | 2,183.65 | -22.61% |
| Adani Ports | 1,114.65 | -13.57% |
| SBI Life Insurance | 1,477.95 | -2.95% |
| NTPC | 356.15 | -2.88% |
| SBI | 780.75 | -2.77% |
Why Did the Market Fall?
The primary reason behind today’s market slump was the significant sell-off in Adani Group stocks following new allegations from US prosecutors. Founder Gautam Adani has been charged with involvement in a $250 million (~₹2,100 crore) bribery scheme related to securing solar energy contracts in India.
Details of Allegations
Criminal Charges: The indictment, filed in Brooklyn, names Gautam Adani, Sagar R. Adani, and Vneet S. Jaain for their roles in orchestrating the bribery scheme. The charges include:
- Making false statements to US investors.
- Violating federal laws.
- Attempting to obstruct justice by deleting electronic evidence and misleading US authorities.
SEC Civil Lawsuit: Alongside criminal charges, the SEC has filed a civil lawsuit, alleging governance lapses and lack of transparency.
Impact on Adani Group Stocks
Adani Group’s dollar-denominated bonds also faced steep declines. Bonds issued by Adani Green Energy in March fell by 15 cents, while those from Adani Electricity Mumbai maturing in February 2030 dropped 8.6 cents.
| Stock | Price (₹) | % Change |
|---|---|---|
| Adani Enterprises | 2,183.65 | -22.61% |
| Adani Green Energy | 1,172.50 | -17% |
| Adani Energy Solutions | 697.25 | -20% |