Wednesday saw a decline in Indian stocks as a result of losses at the Adani Group following concerns expressed by short seller Hindenburg regarding the conglomerate’s financial position, while broader Asian markets edged higher due to persistent predictions on a Chinese economic revival this year.

India’s Nifty 50 and BSE Sensex 30 indexes fell 1.1% and 0.9%, respectively, with the Adani Group’s shares bearing the brunt of the decline after Hindenburg alleged that the company was heavily leveraged and thus vulnerable to a severe decline in valuation.

The performance of the seven listed Adani companies was worst for Adani Ports and Special Economic Zone Ltd (NS:APSE), which fell by roughly 6.3%. Adani Enterprises Ltd (NS: ADEL), Adani Total Gas Ltd (NS:ADAG), and Adani Wilmar Ltd (NS:ADAW) all had declines of 2.8% to 5%.

The second-largest conglomerate in India was charged by Hindenburg with fraud and stock market manipulation. The company’s seven members account for a sizable portion of the Indian stock markets, giving it a total market value of nearly $200 billion.

Broader Although volumes were still low because of a week-long Chinese market holiday, Asian markets eked out gains. South Korea’s KOSPI increased 1.4% while Japan’s Nikkei 225 index increased by 0.4%.

Markets anticipate that a weeklong holiday in China will significantly increase economic development, particularly after the nation removed the majority of its COVID-fighting regulations and reopened its borders following a three-year period of lockdowns.

Given that China is a significant trading destination for the region, a recovery in the Chinese economy is expected to spread to the rest of Asia. Over the past two months, Chinese stock markets as well as the majority of China-exposed markets saw significant gains.

On Wednesday, the majority of Southeast Asian markets, which are also highly exposed to China, saw a modest increase.

However, Australia’s ASX 200 index dropped 0.3% as a result of data indicating that the country’s consumer price index inflation increased more than anticipated in the fourth quarter and remained at a 32-year high.

The number predicts further pricing pressure on the Australian economy and more interest rate increases by the Reserve Bank, both of which are likely to have a negative impact on local stocks.

Following disappointing economic reports from the U.S. and the Eurozone, broader markets are also apprehensive about a likely global recession this year. This week’s attention is on the U.S. fourth-quarter GDP figures, which are anticipated to reflect a slowing in growth.