Hindenburg Research — a firm of about five people — published a report accusing the Adani Group of fraud and stock manipulation, claiming the stocks were overvalued by ~85%, and disclosing short positions in Adani bonds and SGX Nifty. The rout was historic: Adani stocks fell 70–75% on average in a month, Adani Total Gas hit its lower circuit for 19 straight sessions, and more than $100 billion of group market value evaporated. LIC's ~₹30,000 crore Adani exposure showed ~₹35,000 crore in mark-to-market losses.

The Nifty fell roughly 1,400 points (~7–8%) to near 17,500 while global markets rallied — India decoupled downward and became the world's worst-performing major market in Q1 2023. The echoes of 1982 were unmistakable: the cosmos reversed, and this time the shorts won.

On Budget Day, at about 1 pm, Credit Suisse announced it would no longer accept Adani bonds as collateral. Traders who had pledged those bonds were forced to square positions or post cash. Adani Enterprises and Adani Ports went into freefall through successive lower circuits — 10%, 15%, 20%, 25%, 30% and beyond — the day after the Adani FPO closed.

Bank Nifty swung +1,500 then -2,500 points, and the Nifty touched 17,400 before recovering. Adani later cancelled the FPO — the first such retreat for a large Indian issuer. A green budget day had been turned red by one bank's collateral decision: market plumbing had crashed prices faster than any news could.

Silicon Valley Bank's shares fell 60% in a day, and the US regional-banking crisis followed, with First Republic down ~70%. Fear spread globally: Indian markets fell 1,000+ points (~2.5%) in a day, and Bank Nifty broke 40,000 from above 44,000. Six central banks took coordinated dollar-liquidity action — a move last seen in 2008.

It was a fast global banking scare that knocked India down about 3% and briefly re-ran the 2008 playbook — but India's banks lived to tell the tale.

After a grinding September–October correction, two catalysts arrived together: the BJP swept three Hindi-belt state elections — a surprise after the five losses of 2018 — and the Fed signalled rate cuts. The Nifty exploded, roughly +1,500 points in November and another +1,500 in December, climbing from about 19,000 to 22,000, a 15% climb in two months. December alone saw two 'green swan' days.

It was a two-month rally bigger than a typical full year's return — the launchpad for the 2024 election-year bull, and the template for 'local positive + global positive = monster rally.'