Indian billionaire Gautam Adani, once the world’s third-richest man, has had a rough week in the markets. Bribery charges filed in the US knocked more than $25bn in value off Adani Group companies on Thursday. Shareholders in its 10 listed company stocks suffered. So might the international investors who have piled into the Indian market in recent months.

The sell-off in most Adani group stocks reversed on Friday, led by shares of Adani Enterprises, the holding company. But for the wider Indian market, this week’s turbulence has drawn fresh attention to the risks and pricey valuations of local stocks.

Just months ago, Indian stocks had been seen as a viable replacement for Chinese equities in global investor portfolios. Shares of Adani Enterprises had been one of the top performers, more than doubling from its low last year. Over the past year, shares had gained 30 per cent up until this week when the chair of Adani Group was indicted in New York in connection with an alleged scheme to bribe Indian officials in exchange for favourable solar power contracts. Adani has denied the allegations.