A $50 billion selloff in Adani Group’s empire following US short seller Hindenburg Research’s scathing allegations has dragged the NSE Nifty 50 Index to its lowest since Oct. 21 with the stocks becoming the top losers in the Indian gauge.
(Bloomberg) — A $50 billion selloff in Adani Group’s empire following US short seller Hindenburg Research’s scathing allegations has dragged the NSE Nifty 50 Index to its lowest since Oct. 21 with the stocks becoming the top losers in the Indian gauge.
Adani Group’s flagship company Adani Enterprises Ltd. fell as much as 20% on Friday, trading below the price band for its key share sale. Adani Ports and Special Economic Zone Ltd. slumped as much as 25%.
Nifty 50 Index’s move signals that sentiment has started souring for India assets since Hindenburg issued a report on Jan. 24, making wide-ranging allegations of corporate malpractice at firms controlled by Asia’s richest man.
Companies linked to Adani Group are planning a detailed response Friday to the report, which they have labeled as “bogus,” according to bondholders who joined a conference call with Adani executives.
(Adds Adani’s response plan in fourth paragraph. A previous version of the story corrects day to Friday in second paragraph.)
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