Adani Group Stocks Plunge After US Indictment, Bitcoin Prices Skyrocket

The shares of Adani group companies plunged on Thursday after the US indicted chairman Gautam Adani and other executives for allegedly bribing Indian officials.

Fresh troubles have emerged for the Adani Group after nearly two years of US short-seller Hindenburg Research accusing the conglomerate of "brazen stock manipulation" and an "accounting fraud scheme." On Thursday, the US Department of Justice filed an indictment alleging that Gautam Adani, his nephew, and six others paid $265 million in bribes to Indian state officials, while misrepresenting this during fundraising efforts in the US. The revelation sent shockwaves through the markets, with Adani Group stocks tumbling and several hitting their lower circuits.

Meanwhile, India’s corporate performance in the September quarter painted a less rosy picture than the optimism surrounding the country’s growth story. Combined revenue for 3,832 BSE-listed companies grew at just 8.3% year-on-year—the slowest pace in four quarters—according to a Mint analysis. Net profits fared slightly better, rising 9.5%. However, this growth was largely propped up by the banking, financial services, and insurance (BFSI) sectors. Excluding BFSI, revenue growth slipped to 5%, while profit growth dwindled to 5.5%.

In other news, the Competition Commission of India (CCI) has slapped a penalty of ₹213 crore on Meta for alleged abuse of its dominant position through WhatsApp's 2021 privacy policy update. The CCI claims the update undermined users’ ability to opt out of data sharing with Meta's social media platform, Facebook. In addition to the fine, the regulator has directed WhatsApp to refrain from sharing user data with other Meta entities for advertising purposes for the next five years.

Furthermore, political parties in India are attempting to woo voters with various populist measures, including cash transfers to women, subsidized gas cylinders, and free electricity. These measures are adding stress to already strained state budgets. While the central government has also announced such populist measures, or freebies, they have managed to stay on the fiscal consolidation path. In contrast, state governments have seen a rise in their fiscal deficit as a percentage of GSDP in recent years, Mint reported.

Donald Trump’s victory in the US presidential election has reignited global fears of a potential trade war. Throughout his campaign, Trump repeatedly vowed to impose import tariffs, a promise that carries weight given his track record. During his previous term, average tariffs on Chinese and Indian imports into the US surged—doubling and tripling, respectively, to around 8% in 2019, according to a Mint report. This escalation sparked a trade war, with several countries imposing retaliatory tariffs on US goods. While services trade offers some relief, it is unlikely to fully offset the impact on goods trade.

In an effort to expand the Prime Minister Internship scheme, the government is considering lowering the age criterion to 18–25 years, from the current 21-24 years, Mint reported. The scheme currently provides over 125,000 internship opportunities across 20+ sectors, offered by around 280 leading companies. It is restricted to applicants whose families earned less than ₹8 lakh in 2023-24 and do not have any member holding a permanent government job.

Among listed hospitality companies, Tata Group-owned Indian Hotels Co Ltd (IHCL) has managed to stand out with its performance. The company's managing director and chief executive officer (CEO) Puneet Chhatwal aims to double the company's hotels and revenue by 2030 and achieve a return on capital employed of 20%-plus, Mint reported. While these targets may seem ambitious, IHCL has delivered in the past five years, with its share price surging over 400%.

Finally, Trump’s pledge to support cryptocurrencies, marking a reversal of the US government’s previous hardline stance, has propelled Bitcoin to new heights following his victory. After its dramatic crash in 2019, Bitcoin has now surpassed the $97,000 mark and is expected to continue its upward trajectory.