KOCHI: The news of the U S Securities and Exchange Commission (SEC) filing a charge sheet against Gautam Adani and his son-in-law Sagar Adani has caused a dramatic plunge in the share prices of Adani Group companies on the Indian stock market. Early trading saw a sharp drop in shares, with Adani Green Energy, Adani Ports, and Adani Solutions losing up to 20 percent. Adani Enterprises saw the most significant decline, falling 22.61 percent to Rs 2,183.65. Other stocks in the Adani Group, including Ambuja Cements, Adani Total Gas, Adani Wilmar, Adani Power, NDTV and ACC, also experienced substantial losses. Shares of banks and financial institutions holding investments in the Adani Group were similarly affected.

On the previous day alone, the market value of Adani Group companies plummeted by Rs 2.24 lakh crore, while Gautam Adani's personal wealth decreased by more than Rs 1 lakh crore. This marks the largest single-day loss for the group since the Hindenburg allegations earlier this year.

Investors pull back amid crisis

The crisis has led to a sharp decline in the share price of CGQ, a major investor in the Adani Group. In response, CGQ head Rajiv Jain stated that the company would review its investments in the Adani Group. CGQ had come to the group's aid during its previous setback following the Hindenburg report.

Further compounding the challenges, leading financial agency Moody's downgraded the Adani Group’s ratings, which contributed to the market downturn. In addition, the Adani Group canceled a planned bond sale intended to raise $600 million due to the intensifying adverse news surrounding the group.

Stock market impact

The allegations against the Adani Group also had a broader impact on the Indian stock market. The Sensex closed at 77,155.79, down 422.59 points, while the Nifty fell 168.86 points to 23,349.90. The selling pressure was exacerbated by the withdrawal of foreign investors and domestic fund outflows, leading to widespread losses across the market.