Indian stock markets faced a significant downturn on Thursday, with the BSE Sensex plunging 902 points or 1.16% to close at 76,802.73, well below its day’s high of 77,711.11. Meanwhile, the NSE Nifty50 dropped 255 points or 1.08% to settle at 23,263, slipping further into negative territory after a weak opening.
The sharp sell-off was attributed to multiple factors, including the indictment of billionaire Gautam Adani in a bribery case, escalating geopolitical tensions in the Russia-Ukraine war, and broader weakness across global markets.
Adani group stocks drag markets
A major blow came from the Adani Group, as US authorities accused Gautam Adani and other defendants of paying approximately $265 million in bribes to Indian officials to secure lucrative contracts. The allegations have caused a ripple effect, with Adani Group stocks plunging up to 20% in intraday trading.
Key decliners included:
- Adani Energy Solutions: Down 20% to ₹697.70
- Adani Enterprises: Down 10% to ₹2,538.20
- Adani Ports and SEZ: Down 10% to ₹1,160.15
- ACC: Down 10% to ₹1,966.65
- Ambuja Cements: Down 10% to ₹494.65
Other Adani-linked companies such as Adani Green Energy, Adani Power, NDTV, and Adani Wilmar also witnessed declines ranging between 10% and 20%.
Key contributors to Sensex’s decline
Heavyweight stocks added to the market’s woes. Notable contributors to Sensex’s decline included:
- State Bank of India (SBI): Down 4.3%, contributing 120 points to the fall.
- Adani Ports: Down 10%, accounting for 82 points.
- Reliance Industries: Down 1.6%, contributing 75 points.
- ITC: Down 1.9%, contributing 65 points.
- ICICI Bank: Down 2.3%, contributing 54 points.
In total, 21 out of 30 Sensex stocks ended in the red, with financial and infrastructure stocks bearing the brunt of the losses.
Sectoral performance
Most sectors traded in negative territory, with notable declines in:
- Nifty PSU Bank: Down 4.26%, the worst performer of the day.
- Nifty Metal: Down 2.15%.
- Nifty Oil and Gas: Down 2%.
- Other sectors such as Nifty FMCG, Nifty Media, and Nifty Consumer Durables also posted losses of 1–2%.
However, Nifty IT bucked the trend, gaining 0.50% as investors sought refuge in technology stocks.
Broader markets
The broader indices also reflected selling pressure:
- The BSE SmallCap Index dropped 1.41% to 51,750.03.
- The BSE MidCap Index declined 1.30% to 44,050.21.
Global market cues
The sell-off in Indian equities mirrored trends in Asian markets, where geopolitical tensions weighed heavily.
- Japan’s Nikkei 225 fell 0.92%, while the Topix Index lost 0.53%.
- Hong Kong’s Hang Seng Index declined 0.13%.
- Australia’s S&P/ASX 200 was down 0.16%.
- South Korea’s Kospi, however, gained 0.53%, supported by positive local developments.
In the US, the overnight session saw a mixed performance:
- The S&P 500 ended flat.
- The Nasdaq Composite dipped 0.11%.
- The Dow Jones Industrial Average gained 0.32%.
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Market analysis
The Russia-Ukraine war escalation has added a layer of uncertainty for global investors, making Indian equities particularly vulnerable to risk-off sentiment.
“Escalations in geopolitical tensions have created a wait-and-watch approach among investors. However, a sharp slide appears unlikely as the US markets have largely shrugged off these concerns,” said Dr V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Technical outlook
Analysts at Axis Securities identified 23,588 as the trend-deciding level for Nifty.
- If Nifty trades above this level, it could recover to 23,711–23,904–24,027.
- Conversely, trading below 23,588 could lead to further declines to 23,395–23,272–23,079.
The confluence of Adani-related developments, geopolitical uncertainties, and weak global cues created a perfect storm for Indian equities. While technical indicators suggest potential for recovery, market participants are likely to remain cautious amid an uncertain environment.
Investors will closely monitor developments in the Russia-Ukraine conflict, Adani Group’s legal challenges, and global economic trends for direction in the coming sessions.
