Thu Nov 21 19:44:19 UTC 2024: ## Indian Stock Market Plunges on Weak Global Cues and Adani Indictment

**MUMBAI, India** – Indian stock markets suffered a significant downturn on Thursday, November 21st, extending a recent losing streak. The Sensex closed 0.54% lower at 77,155.79, and the Nifty 50 fell 0.72% to 23,349.90. This follows a day of modest gains on Tuesday. The market capitalization of BSE-listed firms dropped by approximately ₹6 lakh crore (approximately $725 million USD) in a single day.

The decline was attributed to several factors, including weak global cues, disappointing Q2 earnings reports, escalating geopolitical tensions, and the US indictment of Adani Group Chairman Gautam Adani on bribery charges. The Adani indictment, alleging a multi-billion dollar bribery and fraud scheme involving over $250 million in bribes to secure solar energy contracts, sent shockwaves through the market, with shares of Adani Enterprises and Adani Ports plummeting by 23% each.

Weak Q2 earnings also contributed to the selloff. While the banking, financial services, and insurance (BFSI) sector showed some resilience, overall revenue and profit growth slowed significantly compared to the previous quarter. Analysts pointed to weakness in consumption, asset-quality stress in certain BFSI segments, and reduced government spending as contributing factors.

The ongoing Russia-Ukraine conflict further dampened investor sentiment, particularly following Russia’s revised nuclear doctrine. Foreign portfolio investors (FPIs) continued their relentless selling, adding to the downward pressure.

Market analysts expressed a cautious outlook, citing weak market texture and key support and resistance levels to watch. While some anticipate a potential short-term rebound, the overall sentiment remains bearish, with many advising a hedged approach to investment. The Nifty 50 remains below its 200-day moving average, a further indication of weak market sentiment.

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