When the stock market If the market opens for trading on Monday morning, there could be an initial knee-jerk reaction as some large investors might choose to play it safe by holding light positions and then wait for trouble to develop.
“The market may correct a bit. There could be some impact on Adani shares “Also, but I don’t think there will be a very strong reaction like the one when Hindenburg published its first report in January last year,” independent markets expert Ambareesh Baliga told ET Markets.
Most analysts do not expect a major impact on the stock market.
“Overall, this is not going to have a big impact on the market on Monday morning. The market has been behaving in a very mature manner. It is not as if the sky is going to fall,” said Kranthi Bathini, head of equity strategy at WealthMills Securities. While noting that stock prices are slaves to earnings, she said, “The report will not have any impact on the earnings of any company.” Adani Group “Businesses will continue to function as usual. But if there is any impact on earnings, the market will respond,” said Gurmeet Chadha, fund manager at PMS, who said one should not overreact and let the facts come out. “Systematic attack on our companies and now the regulator to undermine and create doubts on India’s story. RBI, SEBI are among the best in the world. Don’t overreact and let the facts come out. This is not an isolated incident!” he said on social media.
Another fund manager, Deepak Shenoy, who runs Capital Mind, dismissed the allegations as virtually baseless.
“I think they’ve basically resorted to sensationalism. There’s virtually nothing of substance,” he said.
What are Hindenburg’s claims?
The US-based short seller has now alleged that Head of Sebi Madhabi Puri Buch and her husband Dhaval Buch held stakes in offshore funds based in Bermuda and Mauritius used by Gautam Adani’s brother Vinod Adani “to accumulate and trade large positions in Adani Group shares.”
Read also | Explained: Who are the Hindenburg boys and why are they after Sebi boss Madhabi Puri Buch?
While the new report contains no fresh allegations against the Adani Group, it raises questions about whether Sebi can be “trusted as an objective arbiter in the Adani matter”.
Earlier this year in January, the Supreme Court had ruled out handing over the probe to the CBI or forming a SIT to investigate the allegations against the Adani Group.
In its judgment, the top court said Sebi’s conduct inspires confidence that the regulator is conducting a thorough investigation.
Both the Buch family and the Adanis have denied all allegations.
“It is unfortunate that Hindenburg Research, against whom SEBI has taken enforcement action and issued a show cause notice, has decided to try to defame it in response to the same,” read a joint statement by Madhabi and Dhaval Buch.
The Adanis said they have “no business relationship” with the Buch family. “For a discredited short seller under scrutiny for several violations of Indian securities laws, Hindenburg’s allegations are nothing more than red herrings thrown by a desperate entity in complete disregard of Indian laws,” a spokesman for the Adani Group said.
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