Shares of Adani group companies fell between 2.5% and 17.1% in intraday trade before recovering most of the losses on Monday. The turmoil came after a fresh report by US-based Hindenburg Research alleged conflicts of interest involving the Sebi chairman, hampering the investigation.
The market value of the Gautam Adani-led airport and ports conglomerate fell as much as Rs 1.2 trillion but it regained lost ground to end Rs 20 billion lower at Rs 17 trillion.
The group’s two most valuable companies, flagship Adani Enterprises and Adani Ports & Special Economic Zone (both components of the benchmark Nifty index) closed down 1.1 per cent and 2 per cent respectively.
On Saturday, Hindenburg Research published a report questioning the objectivity of Sebi chairperson Madhabi Puri Buch and claiming that she held a “stake” in an offshore entity allegedly used by the Adani group to siphon off funds and inflate share prices. Sebi, Buch and the Adani group have claimed that the allegations are baseless and misleading.
Industry players said the knee-jerk reaction at the opening of the deal was due to concerns that Sebi might soon impose restrictions against the Adani group.
In a statement issued on Sunday, the market regulator said only one of the 24 investigations against the Adani group was pending. Sebi has also issued show-cause notices to several Adani group companies for failures to disclose information during the March 2024 quarter.
“Hindenburg’s first report in January 2023 was an unknown demon. Now, it is more in line with expectations. However, every time such reports come out, people panic and sell. The detailed rebuttal by the Sebi chairman and the absence of adverse comments from the government have helped boost sentiment,” said Ambareesh Baliga, independent equity analyst.
Meanwhile, the benchmark Sensex fell as much as 480 points, or 0.6 per cent, in intraday trade but ended at 79,649, down 57 points, or 0.07 per cent, from its Friday close. The Nifty ended the session at 24,347, down 21 points, or 0.08 per cent. Adani Ports was the biggest loser among the Nifty components.
Gains from tech and financial heavyweights Infosys, HDFC Bank and Axis Bank helped markets recover from the day’s lows.
The market had a mixed range with 2,187 stocks declining and 1,899 advancing. Foreign portfolio investors (FPIs) were net sellers worth Rs 4,681 crore, and domestic institutions were buyers worth Rs 4,478 crore.
First published: August 12, 2024 | 20:33 IS
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