Hindenburg Research has once again hit Adani Group with its latest set of allegations against the Gautam Adani-led ports-to-power conglomerate, and this time, the US-based short seller has also roped in Sebi Chairperson Madhabi Puri Buch in its latest salvo.
In its new investigative report, Hindenburg has alleged that Buch and her husband had investments in obscure offshore entities used in Adani’s ‘money siphoning scandal’.
While Adani Group has refuted the latest allegations, terming them as “malicious”, “mischievous”, and “manipulative”, Sebi chief Madhabi Buch and her husband Dhaval Buch have termed them ‘baseless’ and an attempted ‘character assassination’.
Indian stock market investors are worried how the latest unfolding in the Adani-Hindenburg saga will impact the market and whether Adani Group stocks crash like they did last year.
In 2023, when the US short-seller published first allegations of insider trading and other stock market violations by the Adani Group, the claims that have been repeatedly denied by the Gautam Adani-led conglomerate, the Adani Group stocks saw a massive sell-off over a period that wiped out $100 billion of their stock market value.
However, the Adani Group shares have since clawed their way back up, and now the group commands a market capitalization above its pre-Hindenburg peak.
There are 10 listed Adani Group stocks - Adani Ports & SEZ, Adani Enterprises, Adani Power, Adani Energy Solutions, Adani Green Energy, Adani Total Gas, Adani Wilmar, Ambuja Cements, ACC and NDTV.
Stock market experts believe this time it is different and they do not expect any major selling wave in Adani Group stocks as well as overall market due to the latest Hindenburg allegations.
“I do not expect too much impact on the stock market due to the latest Hindenburg report. There may be initial reaction, but buying will eventually come up in the market,” said Sudip Bandopadhyay, Group Chairman of Inditrade Capital.
He also does not expect Adani Group stocks to have a major negative impact of the latest allegations by the US-based short seller.
“Adani Group stocks will also have no major negative impact of these latest developments. The shares of Adani group companies may fall in the beginning, but will recover,” Bandopadhyay said.
Coining similar views, Avinash Gorakshakar, Head Research at Profitmart Securities said that markets may not see any negative surprises on Monday due to the Hindenburg report.
“These are just blatent allegations without conclusive evidence to create noise in the market. I do not expect major selling in Adani Group stocks as the market will not take this Hindenburg report seriously,” Gorakshakar said.
He is of the view that the Indian stock market will continue to see liquidity driven rally with stock specific actions. Moreover, Gorakshakar does not expect any panic selling in the market due to the US short-seller’s report.
According to him, the financials of Adani Group companies are strong and the earnings are improving. Hence, even if the Adani group stocks see some fall initially, Gorakshakar believes they will recover on the back of strong earnings.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
