(Reuters) – Indian shares are likely to get off to a subdued start on Thursday, with attention on Adani Group following the indictment of its billionaire chairman in New York for his involvement in an alleged multi-billion dollar bribery and fraud scheme.
The Gift Nifty futures were trading at 23,539.5 at 08:09 AM IST, indicating that the benchmark Nifty 50 will open around Tuesday’s close of 23,518.5.
Indian markets were closed on Wednesday due to a local holiday.
The benchmark Nifty 50 and BSE Sensex ended their losing streak on Tuesday and recovered from a correction. However, the outlook remains cautious due to the average corporate earnings season and continued foreign outflows.
Risk sentiment could be further affected after US prosecutors said on Wednesday that Gautam Adani, one of the world’s richest individuals, along with his cousin Sagar Adani, have been charged in New York.
U.S. prosecutors alleged that Adani and seven other defendants agreed to pay about $265 million in bribes to Indian government officials to win contracts expected to generate $2 billion in profits over 20 years, including the development of the country’s largest power plant project country.
The Indian embassy in Washington did not respond to requests for comment.
Dollar bond prices for Adani companies fell sharply in early trading in Asia.
The indictment comes almost two years after US short seller Hindenburg Research accused the Adani Group of abusing offshore tax havens, leading to a sharp fall in Adani shares.
Since the Hindenberg Report, at the last close, only three of the conglomerate’s 10 listed entities, Adani Power, Adani Ports and Ambuja Cements, have recovered.
Indian equities came under pressure from benchmark indices and broader, more domestically focused small and mid-caps, which fell more than 10% from September’s record levels, sliding into a technical correction.
Other Asian markets traded lower on Thursday, while shares on Wall Street closed mixed overnight as concerns over escalating tensions between Russia and Ukraine weighed on sentiment. [MKTS/GLOB]
STOCKS TO WATCH
** US Drug Regulator Issue Form 483 with seven observations following inspection at Dr.’s Bollaram factory. Reddy in Hyderabad.
** Garden Reach Shipbuilders signs a contract worth Rs 2.26 billion with the West Bengal government for 13 hybrid ferries.
** BEML wins order worth Rs 2.47 billion from Central Coalfields.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips)
