Some bank stocks came under pressure amid a broad market sell-off on November 21, exacerbated by news of bribery charges filed by a US federal court against Gautam Adani and other group executives, traders said.
Public sector bank stocks saw significant declines on Thursday, with some falling as much as 7 percent. The Nifty PSU index was down around 5 percent led by SBI, Bank of Baroda, PNB and Canara Bank.
SBI’s share fell 5 percent to Rs. 761.55, Canara Bank fell 5.4 percent to Rs. 92.52, PNB fell 6 percent to Rs. 94.81 and shares of Bank of Baroda fell by 7.3 percent to Rs. 219.85 was reached.
PSU bank stocks fell sharply following news that Adani Group founder and chairman Gautam Adani and other executives had faced bribery charges from US prosecutors. He is accused of allegedly paying $250 million in bribes to Indian officials to secure renewable energy supply contracts in India.
Apart from PSU banks, state-owned financial institutions such as REC (Rs 469.25) and Power Finance Corporation (Rs 433) saw declines of 9% and 8% respectively.
Adani Green Energy, part of the Adani Group, on Thursday called off a $600 million bond issue after US prosecutors formally charged Gautam Adani in connection with an alleged bribery scheme.
In a regulatory filing, Adani Green Energy announced that the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) have filed criminal charges and civil complaints in the Eastern District of New York against Gautam Adani, Sagar, respectively. Adani and board member Vineet Jain.
Following these developments, Adani Green Energy said its subsidiaries have decided to suspend the planned USD-denominated bond offering.
Meanwhile, the Indian rupee hit an all-time low on Thursday, pressured by expected foreign inflows from domestic stocks and a stronger US dollar, as investors adjusted expectations of an aggressive rate cut by the US Federal Reserve.
The rupee touched a low of 84.4225 during early trade, unchanged from its previous session’s close, settling at 84.4150 as of 9:30 AM IST.
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