Rs 53,000 crore loss! Adani stocks fall up to 7% as investors play safe after Hindenburg resurfaces
Shares of Adani Group companies fell up to 7% on Monday as investors reacted to allegations against Sebi chief Madhabi Buch, following the release of a new report by Hindenburg named “Hindenburg 2.0.”
Hindenburg fallout: Adani stocks fall up to 7% as investors play safe
Shares of Adani Group companies fell up to 7% on Monday morning as investors reacted to allegations against Sebi chief Madhabi Buch in the Adani vs Hindenburg controversy. This led to a loss of approximately Rs 53,000 crore, with the combined market capitalization of 10 Adani stocks falling to Rs 16.7 lakh crore.
Adani Green Energy shares were among the worst hit, as it suffered a loss of 7% to hit the day’s low at Rs 1,656 on BSE before recovering some of the losses later on.
Adani Total Gas shares were down around 5%, Adani Power 4%, while Adani Wilmar, Adani Energy Solutions, and Adani Enterprises were trading around 3% lower.
Shares of Nifty stock Adani Ports was down around 2% and was the second biggest loser on the bluechip index after the conglomerate’s flagship entity Adani Enterprises.
While the Hindenburg report raises no fresh charges against the Adani Group, it has alleged that Sebi chief Buch and her husband Dhaval Buch had stakes in Bermuda and Mauritius-based offshore funds used by Gautam Adani’s brother Vinod Adani “to amass and trade large positions in shares of the Adani Group”.
As the report raised questions on whether Sebi can be trusted as an objective arbiter in the Adani matter, the issue has again attracted political attention with Opposition leaders demanding Buch’s resignation and a JPC probe on the Hindenburg report.
Buch has denied all allegations and Sebi has issued a statement saying Buch had made relevant disclosures required in terms of holdings of securities and their transfers from time to time. “Chairperson has also recused herself in matters involving potential conflicts of interest,” the statement said.
Market analysts have dismissed the report as “sensationalism” and say that it will not have much impact on stock prices.
“It appears that this “revelation” is unlikely to impact the market meaningfully. The buy on-dips strategy which has been working well in this bull run is likely to work again,” said Dr. V K Vijayakumar of Geojit Financial Services.
In the days to come, Adani investors would also be tracking news related to the completion of Sebi investigation on Hindenburg’s last year report.
Sebi said out of the 24 matters it was investigating, one more investigation was completed in March 2024, and one remaining investigation is close to completion.
“During the ongoing investigation in this matter, more than 100 summons, around 1,100 letters and emails have been issued to seek information. Further, more than 100 communications have been made seeking assistance from domestic/foreign regulators and external agencies. Also more than 300 documents containing around 12,000 pages have been examined,” it said.
The regulator also attempted to reassure investors by advising them to exercise due diligence before reacting to such reports.