South Asia

Indian government has nothing to do with Adani issue, says minister

Screenshot from Reuters video.

India’s minister of parliamentary affairs said on Friday that the Indian government has nothing to do with the issues of the Adani Group whose shares have tumbled following a scathing report from a U.S. short seller.

“The government has nothing to do with Adani matters. There’s completely no connection,” Pralhad Joshi told reporters outside the parliament building as quoted by Reuters.

Adani Group companies’ shares fell sharply on Friday as ripples from a market rout disrupted parliament for a second day, fanning fears of systemic risk after a critical research report by a US short-seller, Reuters reported.

“Also, the Adani Group shares are still under pressure today as well and because two of the (Adani) group shares are in, part of Nifty (Nifty 50 index), it is pulling the Nifty down to some extent,” said Sunil Shah, head of a Mumbai-based financial services firm, as quoted by Reuters.

According to a Reuters report, seven listed Adani enterprises lost more than half their market capitalization, which faded to less than $100 billion, after the Hindenburg Research report raised questions about the conglomerate’s debt levels and use of tax havens.

Adani has called the Hindenburg report baseless and said its financials remain strong, but investor sentiment has withered, bringing an unabated fall in stock prices.