Indian shares end lower, pulled down by Adani firms on implications of US indictment
Updates for market close
By Bharath Rajeswaran
Nov 26 (Reuters) -Indian shares inched lower on Tuesday, weighed down by AdaniGroup stocks' on worries about the implications of alleged bribery charges by the U.S.against their key executives.
The NSE Nifty 50 .NSEI shed 0.11% to 24,194.5 points, while the BSE Sensex .BSESN lost 0.13% to 80,004.06.
Moody's Ratings cut its outlook on seven Adani entities to "negative" from "stable" on the day, citing the U.S. indictment of chairman Gautam Adani and seven others on alleged bribery and fraud.
TotalEnergies TTEF.PA halted its investments in the group on Monday and ratings agency Fitch put some of the conglomerate's bonds on watch for a possible downgrade.
Adani Group's 10 listed companies have lost about $34 billion in market value in four sessions, including Tuesday, since the U.S. indictment. The grouphas denied the allegations, terming them "baseless".
Adani Green ADNA.NS and AdaniEnergy ADAI.NS - which are at the centre of the indictment charges - fell 7.25% and4% each. Adani Enterprises ADEL.NS and Adani Ports APSE.NS declined 4.74% and 3.25%, respectively, toppingthe list of Nifty 50 laggards on Tuesday.
"The sharp drop in Adani stocks is a kneejerk reaction to the updates coming in from ratings agencies and TotalEnergies," said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.
"Except for companies like Adani Ports, ACC and Ambuja Cements, which have good cash flows, other stocks are unlikely to see any institutional interest in the near term given the U.S. indictment," Agrawal said.
Eight of the 13 major sectors logged losses.
However, the ITindex.NIFTYIT rose 1.1% and was the top sectoral gainer.
Food delivery platform Swiggy SWIG.NS gained 7.24% after UBS initiated coverage with a "buy" rating.
Other Asian markets fell after U.S. President-elect Donald Trump pledged a 25% tariff on all imports from Canada and Mexico and an additional 10% tariff on China. MKTS/GLOB
Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy
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