Modi government officials opt for silence over Adani stock rout

The Adani Group’s Rs 9.8 lakh crore ($120 billion) loss in market value after Hindenburg Research accused it of fraud roughly equates to India’s annual infrastructure budget. But the government has shown few signs of worry — or at least that’s the impression it’s giving to the markets.

The calculus is tricky. Prime Minister Narendra Modi is considered a close ally of Gautam Adani, whose business interests often align with the government’s growth goals. A show of support may assuage investors and stabilize losses for the ports-to-energy conglomerate, which abruptly dropped a Rs 19,700 ($2.4 billion) share sale this week, further sinking the stock.