NEW DELHI: India’s equity markets fell sharply on Friday with both the Sensex and Nifty hitting a three-month low. At close, the Sensex was down 874.16 points or 1.45% at 59,330.90, while Nifty was down 287.70 points or 1.61% at 17,604.30.
The dip was largely due to the slump in Adani group stocks, which fell up to 23% during intraday trading, and its spillover impact on banking stocks that have an exposure to the group. The markets had closed with sharp cuts in the previous trading session on Wednesday, too.
The meltdown left investors poorer by about Rs 11 lakh crore since Wednesday. Adani group stocks have come under pressure after US activist investor Hindenburg Research alleged 85% downside in the scrips “purely on fundamental valuations”, announced a short position in the group’s stocks, and accused Adani of manipulating stock prices. FII stance ahead of the Budget and US Fed meeting also fuelled Friday’s fall.