Adani Contagion Spreads as Indian Benchmark Nears Correction
- Funds pulled $2 billion from India shares in just three days
- Adani news may see India shares underperform China’s, GAM says
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As a corporate governance crisis deepens with Indian billionaire Gautam Adani’s business empire, a broader range of assets tied to the world’s fastest-growing major economy are starting to take a hit.
Contagion from the $108 billion wipeout in Adani group’s stocks following a scathing report from Hindenburg Research last week has helped push the MSCI India Index to the brink of a technical correction. The rupee has fallen against all its Asian peers over the period, while the spreads on an index of bonds in the nation expanded to the widest level in four weeks.