Adani shares plunge on US indictment of Indian oligarch
The tumble dragged down India’s benchmark BSE Sensex Index.
The share prices across various parts of Indian infrastructure tycoon Gautam Adani’s sprawling empire dove Thursday, after US federal prosecutors indicted him on securities-fraud charges tied to alleged bribery of Indian government officials in order to secure billions of dollars’ worth of financing and contracts.
Adani Enterprises Ltd. fell nearly 23%. Adani Green Energy Ltd. dropped nearly 19%. Adani Ports & Special Economic Zone Ltd. dropped 14%. (All prices in terms of the Indian rupee.) Those drops drove the overall Indian market lower, with the benchmark BSE Sensex down by about 0.5%.
Shares in India have attracted interest in recent years as global investors looking for exposure to fast-growing Asian markets have sought to diversify away from China and its economic troubles.
Over the last 12 months, the BSE Sensex is up roughly 18%, making it one of the best-performing markets in the Asia Pacific region. But Indian shares have come under pressure more recently, both because of the strength of the US dollar and growing attention to risks associated with the politically connected nature of India’s largest companies, a concern underscored by the Adani indictment.
