Indian Markets Decline; Adani Stocks Under Pressure Amid US Allegations

Indian stock markets ended Thursday’s session in the red, weighed down by continued selling pressure. The NSE Nifty closed at 23,349.90, down by 168.60 points, while the BSE Sensex settled at 77,155.79, a decline of 422.59 points.

Adani Group Under Pressure Amid Allegations

Adani Group stocks faced significant pressure during the trading session following allegations by the US Department of Justice (DoJ) and the US Securities and Exchange Commission (SEC) against Adani Green’s directors. The conglomerate has strongly denied the allegations.

Shares of Adani Enterprises and Adani Ports were among the top losers, alongside SBI Life Insurance, State Bank of India, and NTPC.

On the National Stock Exchange (NSE), most sectoral indices traded in the red, except for IT, private banks, and realty. Powergrid, UltraTech Cement, Hindalco, Apollo Hospitals, and Grasim Industries were the major gainers.

“Nifty broke its immediate support at 23,350 levels and hit a low of 23,263, indicating sustained weakness. The recovery of around 100 points from the day’s low suggests another possible dead cat bounce,” noted Praveen Dwarakanath, Vice President of Hedged.in. He added that any short-term recovery might present selling opportunities in the index.

Outlook: Near-Term Softness Expected

Market experts predict that Indian markets will remain under pressure in the near term, with potential changes expected next week after the announcement of state election results on Saturday.

Ajay Bagga, a banking and market expert, highlighted geopolitical factors such as the Ukraine-Russia conflict as weighing on sentiment. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Nvidia results, Ukraine firing long-range missiles, and the Adani charges in a US court are dominating markets today. The uncertainty caused by escalations is keeping market participants in a wait-and-watch mode.”

However, Vijayakumar ruled out a sharp slide in the market, pointing to the US markets’ relative stability despite geopolitical tensions.

The combination of domestic challenges, geopolitical developments, and legal issues concerning Adani Group has added to market volatility. Analysts suggest cautious trading as markets await key triggers such as election results and global developments.