Sensex Crashes 1000 Points, Adani Group Stocks Plunge

Indices witnessed a huge decline today as sentiments were hit, following some reports on the Adani Group. The 30-share BSE benchmark declined 1077 points to 59,127.61 till 12:41 pm on Friday. The broader NSE nifty fell 345 points to 17,546.50. Nifty Bank declined sharply 1337 points to 40,310.00 while Nifty Midcap fell 761 points to 29932.35.

From the Sensex pack, SBI, Axis Bank, ICICI Bank declined over 3% in trade today while Tata Motors gained most with 5% intraday and figured in top gainers. Shares of ITC gained 2%.

From Nifty, the top loser stocks were Adani Ports, Adani Total Gas, and Adani Enterprises with a decline of 20%, 20%, and 15%.

Earlier, Hindenburg Research claimed that it holds short positions in Adani Group companies via US traded bonds and non-Indian-traded derivative instruments on Wednesday. The shares of Adani Group witnessed strong decline on January 24 and saw even stronger decline today as a result of the claims made in the report.

Hindenburg had claimed that its two-year investigation divulged that Adani Group has "engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades".

According to a PTI report, "In the 36 hours since we released our report, Adani hasn't addressed a single substantive issue we raised," Hindenburg Research said on Twitter.

"At the conclusion of our report, we asked 88 straightforward questions that we believe give the company a chance to be transparent. Thus far, Adani has answered none of these questions."

Stating that it "fully stands" by the report, Hindenburg said it believes any legal action taken against it would be meritless, added PTI report.

Shares of Adani Green Energy Ltd fell 20% in trade on January 27, 2023. Adani Transmission Ltd shares also declined by 20% till 12:56 pm. Meanwhile, Adani Power Ltd and Adani Wilmar Ltd slipped 5% each on Friday.