(Reuters) -Indian shares fell on Thursday, dragged down by a slump in Adani Group stocks following the indictment of its billionaire chairman in New York over his alleged involvement in a bribery and fraud scheme.
The NSE Nifty 50 was down 1.06% at 23,288.2 points, as of 9:46 a.m. IST, while the BSE Sensex rose 0.87% to 76.912.28.
Eleven of the 13 major sectors posted losses at the open. The broader, more domestically focused small- and mid-caps lost about 1% each.
All 10 listed companies of the Adani Group lost between 9% and 20% after U.S. prosecutors said on Wednesday that Gautam Adani, one of the world’s richest individuals, along with his nephew Sagar Adani, have been indicted in New York in a $265 million bribery scheme.
U.S. prosecutors alleged that Adani and seven other defendants agreed to pay the bribes to Indian government officials to secure contracts expected to generate $2 billion in profit over 20 years, and develop India’s largest solar power plant project.
Adani Group has not responded to requests for a comment on the indictment.
Dollar bond prices for Adani companies fell sharply in Asia trade.
Shares of Adani Enterprises and Adani Ports fell about 10% each, becoming the top Nifty 50 losers.
Adani Group stocks dragged down the energy sub-index, which lost 3%, while state-owned lenders dropped 4.6%.
The benchmark Nifty 50 and BSE Sensex snapped their losing streak on Tuesday, following corrections on Nov. 13 and Nov. 18, respectively, due to moderated corporate earnings and ongoing foreign outflows.
Risk sentiment could be further impacted in the short term due to the indictment, said two analysts.
The charges come nearly two years after U.S. short-seller Hindenburg Research accused the Adani Group of misusing offshore tax havens, which triggered a sharp decline in Adani stocks.
Since the Hindenberg Report, as of last close, only three of the conglomerate’s 10 listed entities, Adani Power, Adani Ports and Ambuja Cements have recovered.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips)
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