Indian Markets Tumble: Adani Scandal and Global Tensions Weigh Heavy

The Indian stock market faced selling pressure, with indices slipping below the opening gains due to geopolitical tensions and domestic scandals. Adani stocks plummeted amid allegations of bribery, while the market braced for potential impacts from state election results. Global market trends also showed mixed performance.

The Indian stock market witnessed renewed selling pressure on Thursday, as early positive trends reversed, pulling both indices into negative terrain. The Nifty 50 began the day at 23,518.50 points, reflecting an initial gain of 0.28%, while the BSE Sensex also kicked off with a positive start at 77,711.11 points, a rise of 0.17%.

Market analysts pointed out that Indian stocks might remain under pressure in the short term. However, changes could be on the horizon next week following the release of state election results. Banking and market expert Ajay Bagga remarked, 'The focus on Nvidia's results, Ukraine's missile activities, and legal troubles for Adani in a US court are key factors today. Asian markets are weak this morning, and Indian markets are expected to follow suit unless the ruling alliance prevails in the elections.'

Among the significant market movers, Adani Enterprises and Adani Ports were the top losers on the Nifty 50, each shedding about 10% and hitting the lower circuit. Adani Green also faced a drastic drop of 18% amid US prosecutors levying bribery charges concerning a solar energy contract. In response, the Adani Group announced halting plans for USD-denominated bond offerings.

Akshay Chinchalkar, Head of Research at Axis Securities, noted a brief surge in Nifty on Tuesday that failed to sustain as buyers retreated near 23,800, forming an 'inverted hammer' pattern. This did generate a bullish signal based on Bollinger bands, marking the first such occurrence since August. However, this signal hinges on surpassing Tuesday's high, with sustained support at 23,350 crucial to avoid slipping toward 23,200, a critical Fibonacci point.

Elsewhere in Asia on Thursday, most major markets felt the sting of selling pressure. Japan's Nikkei 225 index saw a slight decline of 0.84%, while Hong Kong's Hang Seng index dropped by 0.19%. Conversely, South Korea and Jakarta Composite experienced modest gains at this report's filing. US markets closed largely unchanged on Wednesday, with the S&P 500 and Nasdaq indexes holding steady.

(With inputs from agencies.)