Shares of Adani Group companies came under sharp selling pressure on Friday, sparked by reports that the U.S. Securities and Exchange Commission (SEC) is seeking court approval to move forward with legal proceedings involving senior executives of the power-to-ports conglomerate. Several stocks of group companies fell in the range of 3-14%, leading to a significant erosion in investor wealth.

The total market capitalisation of the listed Adani Group companies declined by about ₹1.12 lakh crore in a single session, slipping to nearly ₹12.15 lakh crore from ₹13.27 lakh crore in the previous trading session.

The sharp fall in Adani stocks came amid a broader market decline, despite positive global cues and supportive domestic macro data. Indian equity benchmarks ended nearly 1% lower, weighed down by selling pressure across sectors. The BSE Sensex closed at 81,537.7, down 769.67 points or 0.94%, while the NSE Nifty50 settled at 25,048.65, down 241.25 points or 0.95%.

The sell-off in Adani Group stock was in sync with the broader markets, with the equity benchmarks falling by up to 1% today, despite an optimistic global market and supportive domestic PMI data. The BSE Sensex ended at 81,537.7, down 769.67 points or 0.94%, and the NSE Nifty50 settled at 25,048.65, down 241.25 points or 0.95%.

Vinod Nair, Head of Research, Geojit Investments, said that the market sentiment weighed down by an uptick crude oil prices, a sharp depreciation of the rupee to record lows, FII selling, and earnings delivery falling marginally short of expectations amid premium India valuations.

“Realty and PSU bank stocks underperformed on execution-related delays and profit booking, while Adani Group stocks came under pressure amid reports of potential summons by the US regulator.”

Looking ahead, market sentiment is likely to remain cautious as investors position for the upcoming Union Budget and the US Fed’s interest rate decision, where expectations are muted, he added.

M-cap falls over ₹2 lakh crore YTD

On a year-to-date (YTD) basis, shares of Adani Group companies’ total market capitalisation dropped by over ₹2 lakh crore amid concerns over regulatory risks and correction in the broader markets. The Sensex and the Nifty has fallen over 4% YTD amid persistent selling by foreign institutional investors (FIIs), coupled with heightened volatility ahead of the Union Budget 2026–27 and upcoming US Federal Reserve policy decisions.

From the start of 2026, when the combined market capitalisation of listed Adani Group companies stood at around ₹14.21 lakh crore, the group has seen an aggregate erosion of approximately ₹2.06 lakh crore.

Among individual stocks, Adani Green Energy has declined nearly 25% so far in 2026, while Adani Energy Solutions is down over 22%. The group’s flagship company, Adani Enterprises, has fallen more than 17% during the same period. Other group companies, including Adani Ports and Special Economic Zone, Adani Power and Adani Total Gas, have also seen significant corrections.

The latest bout of selling was triggered by media reports that the U.S. SEC has approached a federal court in Brooklyn, New York, seeking permission to issue legal summons to Adani Group Chairman Gautam Adani and his nephew, Sagar Adani. The application was reportedly filed earlier this week before U.S. District Judge Nicholas Garaufis.

According to court filings cited in media reports, the SEC has requested approval to use alternative methods to serve the summons, including direct electronic communication. The regulator said its attempts to serve notices through conventional diplomatic and legal channels had failed, with Indian authorities declining two earlier requests. As a result, the SEC is seeking the court’s permission to proceed with direct service.

The SEC’s civil lawsuit, filed in November 2024, alleges that Gautam Adani and Sagar Adani violated U.S. securities laws by making false and misleading statements related to Adani Green Energy Ltd. The allegations are linked to disclosures made to U.S. investors.

The Adani Group has been under heightened global scrutiny since early 2023, following a short-seller report that raised governance and accounting concerns, triggering investigations by Indian regulators as well as U.S. authorities. While Indian regulatory probes have since been completed or eased, scrutiny from U.S. agencies has continued.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)