Adani spillover fears rattle LIC, bank stocks

Shares of India’s largest life insurer and many banks plunged on Friday amid concerns about their exposure to the Adani Group that was recently accused by a US short-seller of stock manipulation and accounting fraud.

LIC, which held shares worth Rs 81,262 crore in the ports-to-power conglomerate’s companies before the markets opened on January 25, witnessed a loss of Rs 18,645 crore in those holdings in the last two market sessions. The State Bank of India and nine other public sector lenders collectively saw Rs 50,571 crore being wiped out of their market cap on Friday.