Fri Nov 22 06:57:37 UTC 2024: ## Adani Group Stocks Plummet Amid US Bribery Allegations, Sparking Political Firestorm

**Mumbai, India –** Shares of Adani Group companies experienced a second consecutive day of sharp declines on Friday, November 22nd, 2024, following allegations by US prosecutors that Gautam Adani, chairman of the conglomerate, was involved in a $265 million bribery scheme. Adani Green Energy saw the most significant drop, falling 10.95%, while Adani Energy Solutions plummeted 8.57%, hitting a 52-week low. Other Adani Group stocks also suffered substantial losses, with several reaching their one-year lows. This comes despite a broader market surge, with the BSE Sensex and NSE Nifty indices registering significant gains.

The US Department of Justice (DoJ) indictment alleges that the Adani Group misled investors by denying knowledge of FBI and grand jury investigations into the bribery allegations. The DoJ claims the group made false statements to Indian stock exchanges, and that Gautam and Sagar Adani (Gautam’s nephew) pressured others to make these false statements. The Adani Group denies all allegations. Following the indictment, Adani Green Energy cancelled a $600 million bond offering.

The accusations have ignited a political firestorm in India. Opposition parties, including the Congress and the RJD, are demanding a Joint Parliamentary Committee (JPC) investigation and have called for Adani’s arrest. Congress MP Rahul Gandhi has been particularly vocal in his criticism, accusing Prime Minister Narendra Modi of shielding Adani. The BJP has responded by stating that the law will take its course. Other opposition parties, including the TMC, AAP, CPI, CPM, and Bharat Rashtra Samithi, have echoed calls for investigations.

Internationally, the fallout continues. GQG Partners, a significant foreign investor in the Adani Group, is reassessing its portfolio in light of the allegations. Kenya has cancelled two major deals with the Adani Group totaling $2.6 billion, citing corruption concerns. The White House, while acknowledging the allegations, has reaffirmed the strength of the US-India relationship. The YSR Congress party in Andhra Pradesh has denied any involvement in the alleged bribery scheme.

The ongoing investigations and the market’s reaction represent a significant blow to the Adani Group, marking another major crisis following the Hindenburg Research report earlier this year. The situation remains highly volatile, with analysts predicting continued market uncertainty.

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