Thu Nov 21 16:50:46 UTC 2024: ## Indian Markets Plunge on Adani Indictment, Despite BJP’s Projected Maharashtra Win
**MUMBAI, INDIA –** Indian benchmark indices opened lower Thursday, driven by a double whammy: the Adani Group’s dramatic stock plunge and uncertainty surrounding the ongoing Ukraine conflict. While exit polls suggest a clear majority for the BJP-led Mahayuti alliance in the Maharashtra state elections, the market reacted negatively to the indictment of Gautam Adani and seven other executives by US prosecutors on bribery charges.
Adani Group stocks plummeted by up to 20%, impacting investor sentiment significantly. The indictment, alleging a $250 million bribery scheme, triggered widespread selling. This downturn overshadowed the projected Mahayuti victory in Maharashtra, although opposition Maha Vikas Aghadi also showed strong support in exit polls.
Adding to the market volatility, foreign institutional investors (FIIs) continued their selling spree, offloading ₹3,411 crore worth of equities on Wednesday. Domestic institutional investors (DIIs) countered this to some extent, buying ₹2,783.89 crore.
Market analysts offered mixed perspectives. While some, citing technical indicators and bearish momentum in the Nifty50 index, recommended a “sell on rise” strategy, others pointed to potential positive momentum and a possible bounce back. The 200-day moving average (DMA) has emerged as a critical support level. One analyst noted a bullish Bollinger Bands setup, suggesting a potential rally, but cautioned that this depended on maintaining support levels.
Sectoral trends were varied, with realty, auto, and pharma performing well, while metal and energy sectors experienced losses. Broader indices fared relatively better, closing with gains of nearly 0.5%. The overall market displayed significant volatility, leaving many investors in a wait-and-see mode, particularly given the escalating tensions in the Ukraine-Russia war.
First Piper 