Hindenburg vs Sebi clash: How market react for the Sensex, Nifty, and Adani stocks on Monday morning

Hindenburg vs Sebi clash: How market react for the Sensex, Nifty, and Adani stocks on Monday morning

Investors in the Indian stock market are concerned about the market’s reaction to the most recent developments in the Adani-Hindenburg crisis and whether the Adani Group’s stocks will fall like they did the previous year.

With its most recent accusations against the Gautam Adani-led ports-to-power conglomerate, Hindenburg Research has targeted Adani Group once more. This time, however, the US-based short seller has included Madhabi Puri Buch, the chairperson of Sebi, in its newest attack.

According to Hindenburg’s latest investigative report, Buch and her spouse have assets in unidentified offshore companies that were involved in Adani’s “money siphoning scandal.”

Adani Group has denied the most recent accusations, characterizing them as “malicious,” “mischievous,” and “manipulative.” Meanwhile, Madhabi Buch, the head of Sebi, and her husband Dhaval Buch have called the accusations “baseless” and an attempt at “character assassination,” respectively.

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The Adani Group has always denied any wrongdoing in relation to the initial accusations of insider trading and other stock market violations made by US short sellers in 2023. Over time, the Adani Group’s stocks experienced a massive sell-off that erased $100 billion of their market value.

The Adani Group’s shares have since fought their way back up, though, and the company currently commands a market value that is more than it was before the Hindenburg crash.

Market impact

Adani Ports & SEZ, Adani Enterprises, Adani Power, Adani Energy Solutions, Adani Green Energy, Adani Total Gas, Adani Wilmar, Ambuja Cements, ACC, and NDTV are the ten Adani Group equities that are listed.

Experts in the stock market feel that this time is different and do not anticipate a significant selling wave in the Adani Group’s equities or the market as a whole because of the most recent Hindenburg allegations.

“I don’t think the most recent Hindenburg report will have a significant effect on the stock market. The market will eventually see purchasing, notwithstanding any initial reaction, according to Sudip Bandopadhyay, Group Chairman of Inditrade Capital.

He also doesn’t think that the most recent accusations made by the US-based short seller will have a significant detrimental effect on Adani Group shares prices.

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“These most recent developments won’t have a significant negative impact on Adani Group equities either. The Adani group companies’ stock might initially decline, but they will eventually rise, according to Bandopadhyay.

Similar sentiments were expressed by Profitmart Securities’ Head of Research, Avinash Gorakshakar, who stated that the Hindenburg report might not provide any unpleasant surprises for markets on Monday.

“These are only baseless claims with no solid proof to stir up a commotion in the market. Gorakshakar stated, “I do not anticipate significant selling in Adani Group stocks because the market will not take this Hindenburg report seriously.”

According to him, the Indian stock market would continue to experience a rise powered by liquidity with stock-specific moves. Furthermore, Gorakshakar believes that the US short-seller revelation won’t cause any panic selling in the market.

He claims that the Adani Group companies’ finances are solid and that their earnings are rising. Therefore, Gorakshakar thinks that the Adani group equities will rise in the future due to robust earnings, even if they do initially decline.

Notice: The opinions and suggestions expressed above are not our own; rather, they are those of certain analysts or broking firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.