Indian shares are likely to have a subdued start on Thursday, with attention on Adani Group following the indictment of its billionaire chairman in New York over his involvement in an alleged multibillion-dollar bribery and fraud scheme.

The Gift Nifty futures were trading at 23,539.5, as of 08:09 a.m. IST, indicating that the benchmark Nifty 50 will open near Tuesday’s close of 23,518.5.

Indian markets were closed on Wednesday for a local holiday.

The benchmark Nifty 50 and BSE Sensex ended their losing streak on Tuesday, recovering from a correction.

However, the outlook remains cautious due to an average corporate earnings season and continued foreign outflows.

Risk sentiment could be further impacted after US prosecutors said on Wednesday that Gautam Adani, one of the world’s richest individuals, along with his nephew Sagar Adani, have been indicted in New York.

US prosecutors alleged that Adani and seven other defendants agreed to pay about $265 million in bribes to Indian government officials to secure contracts expected to generate $2 billion in profit over 20 years, including the development of the country’s largest power plant project.

India’s embassy in Washington did not respond to requests for a comment.

Dollar bond prices for Adani companies fell sharply in early Asia trade.

The charges come nearly two years after US short-seller Hindenburg Research accused the Adani Group of misusing offshore tax havens, which triggered a sharp decline in Adani stocks.

Indian shares set to open higher

Since the Hindenberg Report, as of last close, only three of the conglomerate’s 10 listed entities, Adani Power, Adani Ports and Ambuja Cements have recovered.

Indian shares have been under pressure with the benchmark indexes and the broader, more domestically focussed small- and mid-caps dropping more than 10% from record-high levels touched in September, slipping to a technical correction.

Other Asian markets traded lower on Thursday, while Wall Street equities closed mixed overnight as worries about escalating Russia-Ukraine tensions weighed on sentiment.