Last week, there was a lot of volatility in the stock market and the Sensex fell by 1,276 points or 1.57 per cent. On the other hand, the Nifty saw a fall of 375.65 points or 1.52 per cent. This fall was due to the turmoil in the overseas markets. Next week, we may see another fall. So, there could be domestic reasons. Yes, the new report by Hindenburg Research has once again sent an earthquake into the country.
This time the target of short sellers is the head of the stock market regulator SEBI. An American short seller has alleged that SEBI chief Madhabi Puri Buch and her husband held stakes in offshore funds linked to the Adani Group. In such a situation, the shares of the Adani Group may come into focus on Monday. It is estimated that the impact of this report will be seen on the shares of Adani and a downward trend may be observed in the stock market.
Hindenburg’s initial report triggered a $150 billion drop in Adani shares due in January 2023. In the new report dated August 10, Hindenburg said it was not surprising that SEBI did not want to go down the path that could perhaps lead to its chairman. While both Buch and Adani Group have rejected the allegations, the market will be closely watching how Adani shares react to the latest claims.
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What do stock market experts say?
Kranti Bathini, Head of Equity Strategy at Wealthmills Securities, told the media report that apart from the allegations related to the SEBI chairman, most of the claims in the report are already known in the market. In such a situation, I don’t think such allegations can have a long-term impact on the Adani Group stock. Vineet Bolingkar of Ventura Securities does not consider Hindenburg’s allegations serious. He told the media report that they are just recycling a thing. They are trying to link one incident with another without providing any evidence. It is old wine in a new bottle.
Bollinger said that while the report may have some impact on Adani shares and the market in the short term, they should recover soon. Bathini said that any major fall in the Adani Group stock could be a buying opportunity. A market analyst, on condition of anonymity, said that the allegations against the current SEBI chairman are serious. This may be the first time that the finger is being pointed at the current SEBI chairman. This could affect the market because whatever is said and done, the allegations are serious.
Had Hindenburg accused the SEBI chief?
Hindenburg Research has alleged that it suspects that SEBI’s reluctance to take action against the Adani Group may be due to the fact that Buch had holdings in overseas funds linked to the Adani Group. The US firm alleged that Butch and her husband Dhawal had invested in a fund that was allegedly being used by Gautam Adani’s elder brother Vinod Adani.
The SEBI chief and her husband issued a joint statement rejecting Hindenburg’s allegations and terming them as completely baseless. The Butch couple said that the allegations made in the report are completely baseless and baseless. There is no truth in this. Our life and financial situation is like an open book. Over the years, all the necessary disclosures have already been provided to SEBI. We do not hesitate to disclose any financial documents.
