Benchmark indices ended the day in the red as shares of Adani Group companies plunged following bribery allegations against Gautam Adani.
The S&P BSE Sensex declined 422.59 points to close at 77,155.79, while the NSE Nifty50 shed 168.60 points to settle at 23,349.
Broader market indices also faced selling pressure as market volatility surged.
Sectors including metal, PSU banks, oil and gas, and FMCG were among the biggest losers during the session.
While stock markets have been under pressure due to various factors such as foreign outflows, weak Q2 results and valuation concerns, the recent development surrounding Adani Group had a significant impact on Dalal Street.
All 10 listed Adani Group companies fell sharply during the session, with flagship Adani Enterprises falling over 23% on the Bombay Stock Exchange (BSE). While Adani Group has denied the allegations as baseless, the development has wiped out over Rs 2 lakh crore from the market capitalisation of Adani Group stocks.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The domestic market faced renewed pressure due to escalating tensions in the Russia-Ukraine conflict and heightened the nuclear concerns. Additionally, the fresh Adani case with the US DoJ added to the market’s woes.”
“Although there were signs of a slowdown in FII selling, it surged again, adversely affecting market sentiment particularly financials sector. We expect an improvement in the trend when global & domestic political issues stabilise,” he added.
