Modi Government Officials Opt for Silence Over Adani Stock Rout
- Government plays down the Adani Group’s impact on markets
- Fallout of Hindenburg report deflects from India’s budget
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The Adani Group’s $120 billion loss in market value after Hindenburg Research accused it of fraud roughly equates to India’s annual infrastructure budget. But the government has shown few signs of worry — or at least that’s the impression it’s giving to the markets.
The calculus is tricky. Prime Minister Narendra Modi is considered a close ally of Gautam Adani, whose business interests often align with the government’s growth goals. A show of support may assuage investors and stabilize losses for the ports-to-energy conglomerate, which abruptly dropped a $2.4 billion share sale this week, further sinking the stock.