Sensex Falls 500 Points, Nifty Below 23,350 Amid Adani Bribery Allegations - Read Now 

Indian markets were fiercely battered on November 21, 2024, as the Sensex dived by more than 500 points and Nifty fell below 23,350 due to the Adani bribery charges and growing geopolitical tensions emanating from the Russia-Ukraine conflict.

Mid-Day Market Performance

At noon, the Sensex was down 424.48 points or 0.55% at 77,153.90 while the Nifty shed 165.10 points or 0.70%, standing at 23,353.40. Declines heavily out-numbered advances due to low investor confidence.

Impact of Adani Bribery Allegations

Reports of a $250 million bribery indictment against Gautam Adani and seven others in a New York federal court led the sharp downturn. Allegations that the group secured solar energy contracts with bribes sent Adani stocks plunging 20 per cent, down by 10 per cent in early trade.

PSU banks took a big hit as worries about the exposure that they will have towards the Adani Group intensified. Stocks of State Bank of India (SBI), Bank of Baroda (BoB), and Punjab National Bank (PNB) crashed by up to 8%.

Sectoral Weaknesses

Energy, FMCG, and Bank Nifty indices lost up to 2% due to losses in the key heavyweights such as Adani Green, IOC, and Adani Power.
The auto stocks went in for profit booking with the market leaders M&M, Maruti Suzuki, Tata Motors, and Bajaj Auto trading in the red zone.
Nifty IT, after showing strength in the morning traded in red in the afternoon and TCS, Infosys, and HCL Tech and were simply straining to stay positive.

Gainers

Indian Hotels Company Ltd, or IHCL, rose 4 percent, reaching a record high as Jefferies changed its price target to Rs 900. The key gainers included Power Grid Corp, Axis Bank, Hindalco, and Tata Steel.
Market analysts pointed to a wait-and-watch approach as uncertainties mounted. "Geopolitical tensions and the Adani saga are creating a cloud of pessimism," said Kranthi Bathini of WealthMills Securities. Meanwhile, Geojit Financial Services' VK Vijayakumar said global tensions may have been taken lightly by the US market, which keeps downside risks in check, but further failure on Nifty to hold above 23,565 could send it down further toward 23,100.

Expert Insights

Market analysts cite a wait-and-watch approach as uncertainties mount. "Geopolitical tensions and the Adani saga are creating a cloud of pessimism," said Kranthi Bathini of WealthMills Securities. Meanwhile, VK Vijayakumar from Geojit Financial Services suggests that while the US market’s muted reaction to global tensions limits downside risks, Nifty's failure to hold above 23,565 could lead to further declines toward 23,100.

Also Read: Adani Stocks Face Historic Plunge: Rs 2.25 Lakh Crore Loss Amid Bribery Scandal and US Charge