Indian stocks lag Asian peers in January as Adani losses weigh

By Ambar Warrick -- Indian stock markets were set for steep losses in January, lagging their Asian peers following a sharp drop in shares linked to the conglomerate Adani Group, which also triggered a wider selldown in local shares.

The BSE Sensex 30 index was set to lose about 2.7% in January, while the Nifty 50 index was set for a 3.1% loss in the month. Both indexes recently sank to a three-month low. 

Selling in Indian stocks intensified over the past week, with shares of the seven listed firms under the ports-to-power conglomerate Adani Group falling drastically after a short seller report targeted the firm.

Hindenburg Research raised concerns that Adani stocks were highly overvalued due to their debt leverage, and also accused the firm of engaging in widespread stock price manipulation and money laundering. 

While the conglomerate categorically denied the Hindenburg report, threatening legal action against the short seller, the resulting stock rout wiped out as much as $85 billion from Adani’s value.

This in turn affected the Nifty 50 the most, given that Adani Enterprises Ltd (NS:ADEL) and Adani Ports and Special Economic Zone Ltd (NS:APSE) - the conglomerate’s two flagship firms - are constituents on the index. 

The Hindenburg report also weighed on stocks with exposure to Adani. Shares of Bank of Baroda Ltd (NS:BOB), Punjab National Bank (NS:PNBK), ICICI Bank Ltd (NS:ICBK), and State Bank Of India (NS:SBI) were set to tumble between 5% and 10% in January, following a string of sharp losses in the past week. Life Insurance Corporation of India (NS:LIFI), which is also exposed to the conglomerate, was set to lose nearly 10% in January. 

Losses triggered by Adani largely offset strong results from a slew of major lenders. 

Industrial stocks owned by Adani, consisting of Ambuja Cements Ltd. (NS:ABUJ) and ACC Ltd (NS:ACC), also tumbled sharply over the past week. 

Beyond Adani, a string of weak quarterly earnings also weighed on Indian stocks through January, amid increasing costs and lower margins for most local firms.

Markets were also skittish in the run-up to the release of the 2023 Union Budget, with investors holding out for more tax breaks.

The underperformance in Indian stocks comes after they largely outperformed their Asian peers in 2022, thanks to resilience in the Indian economy. But that momentum failed to hold as doubts grew over whether the Indian economy will be able to maintain its strength in 2023, amid increasing global headwinds.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    EC2A 2BN
    United Kingdom

    T:  + 44 ( 0 ) 203 857 2000
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    United Arab Emirates
    T: + 971 44 22 888

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: