Markets react: Adani Group loses over $22 bn as Indian equities turn red

India's major equity indexes plummet on Thursday following the indictment of the Adani group's chairman, Gautam Adani, by US authorities for his involvement in a $265 million bribery conspiracy.

Gautam Adani and seven other defendants, including his nephew Sagar Adani, allegedly colluded to bribe Indian government officials, according to U.S. authorities. According to the US Department of Justice (DoJ), the solar contracts would have generated a profit of over $2 billion over roughly 20 years. Adani group is yet to respond to the allegations.

The group's flagship company, Adani Enterprises sank 22.3 per cent, while Adani Ports lost 20 per cent. They were the Nifty's biggest drags. The other group stocks tumbled between 8.5 per cent and 20 per cent, with the group companies losing about $22 billion in combined market value in early trade.

The news, which had triggered the dollar bond prices for Adani companies to fall sharply in early Asia trade, also affected other sectors. 11 of the 13 major sectors posted losses, with state-owned lenders leading with a 3.6 per cent drop, followed by the energy sub-index, which lost 2.2 per cent.

The charges follow earlier accusations of fraud by Hindenburg Research. In 2023, Hindenburg’s report alleged that Adani’s conglomerate engaged in "brazen stock manipulation and accounting fraud scheme over the course of decades.".