India’s stock markets fall behind Britain

After $140bn of short attacks on Adani Group, Slump emerges

India’s stock markets have fallen behind Britain’s after a highly critical report by a US short-seller that saw $140bn taken off the Adani Group’s national champion status.

After a sharp decline in the Adani Group’s value in recent weeks, the UK stock market has now become the sixth largest in the world.

The group’s members have suffered losses of $142bn (PS117bn), since US short-seller Hindenburg research in January accused them of being “the biggest con in corporate history”.

Adani was founded by Gautam Adani, a billionaire. strongly denied the allegations, and called the report a “calculated attack on India”.

India’s stock market fell to seventh globally due to a slump in the Mumbai Adani-linked shares.

According to Bloomberg analysis, the combined market value for primary UK listings reached $3.11 trillion Tuesday. This is approximately $5.1bn higher than that of India.

Narenda Modi is an important ally of Mr Adani. His group includes a variety of companies that cover energy and infrastructure, including ports and airports, as well as coal.

Hindenburg Research conducted a two-year investigation and found that Mr Adani’s multinational conglomerate was accused of manipulating stock markets and using offshore tax havens. The claims have been strongly denied by the company.

Both Moody’s and S&P, rating agencies, have downgraded the outlook of companies within the group. After lawmakers demanded an investigation into the Adani meltdown, both houses in India’s parliament were forced to adjourn earlier this month.

A weaker rupee has also put pressure on the Indian stock market.

A weaker pound has helped exporters in the UK, while the British market has been buoyant. Last week, the FTSE 100 reached a record high.

The MSCI India Index fell by 6.1 percent this year, and is now down by 10 percent compared to December 1.

The FTSE 350, which includes the FTSE 100 as well as 250, has risen 5.9pc this year.

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