Adani stocks sink Indian shares
Indian shares fell to their lowest level in over a week on Wednesday, dragged by Adani group stocks after a short seller raised fresh concerns about the group's debt in a report that had a ripple effect across the market.
The Nifty 50 index closed 1.25 per cent lower at 17,891.95, while the S&P BSE Sensex fell 1.27 per cent to 60,205.06.
Stocks of the seven listed Adani group companies fell between 1.5 per cent and 9 per cent after Hindenburg, a well-known US short seller, said in a report that key listed companies in the group controlled by billionaire Gautam Adani had "substantial debt".
This has put the entire group on a "precarious financial footing", the report said.
Adani Group refuted the allegations, terming them "baseless."
The flagship Adani Enterprises fell about 1.54 per cent, while Adani Ports and Special Economic Zone dropped more than 6 per cent. Adani Ports was the top loser on the benchmark Nifty index on Wednesday.
Adani-owned cement firms ACC and Ambuja Cements fell 7.28 per cent and 7.77 per cent, respectively.
All the major sectoral indexes logged losses, with the heavyweight financials sliding 2.13 per cent. Analysts cited risk aversion due to the Hindenburg report for the drop.