Adani Stocks Plummet 17% Amid Hindenburg Report Controversy: Rs. 53,000 Crore Wiped Out

Adani Stocks: Shares of the Adani Group plummeted by up to 17% on Monday morning, leading to a staggering Rs. 53,000 crore in market value evaporating following fresh allegations from the Hindenburg report. The controversy has intensified scrutiny on SEBI chief Madhabi Buch, with political and market repercussions unfolding.

Market Reaction: Major Losses Across Adani Stocks

The drop in Adani Group shares has been sharp and widespread. Adani Green Energy was the hardest hit, falling 7% to a low of Rs. 1,656 on the Bombay Stock Exchange (BSE) before recovering slightly. Other major losses included Adani Total Gas, which dropped about 5%, Adani Power at a 4% decrease, and Adani Wilmar, Adani Energy Solutions, and Adani Enterprises each trading around 3% lower. Adani Ports, a Nifty stock, fell by approximately 2%, emerging as the second-largest loser on the blue-chip index.

#StockMarket adani stock crash slowly.. pic.twitter.com/RejnYchblZ

— abhi Kushwaha (@abhiku1905) August 12, 2024

Hindenburg Report and SEBI Chief Allegations

The recent Hindenburg report did not introduce new allegations but reignited controversy by suggesting that SEBI chief Madhabi Buch and her husband, Dhaval Buch, held stakes in offshore funds based in Bermuda and Mauritius. This has led to intense political reactions, with opposition leaders calling for Buch’s resignation and a Joint Parliamentary Committee (JPC) investigation.

SEBI has responded by denying the allegations, stating that Buch had fully disclosed her securities holdings and transfers and had recused herself from matters involving potential conflicts of interest. The regulator has also emphasized that Buch’s disclosures were in line with regulatory requirements.

Market Analysts’ Take: Sensationalism or Significant Impact?

Market analysts have largely dismissed the Hindenburg report as sensationalist, suggesting that it may not have a lasting impact on stock prices. Dr. V.K. Vijayakumar from Geojit Financial Services remarked that the recent “revelation” is unlikely to significantly influence the market. He noted that the strategy of buying on dips, which has been effective during recent bull runs, is expected to continue.

Investors Await SEBI’s Investigation Outcome

Investors are keenly awaiting the outcome of SEBI’s investigation into the previous Hindenburg report from January 2023, which had alleged stock manipulation and other corporate governance issues within the Adani Group. SEBI has reported progress on the investigation, with one matter completed and another nearing conclusion.

In the meantime, market participants have been advised to exercise due diligence before reacting to such reports. The broader market has also been affected, with the Sensex trading 400 points lower, led by declines in major stocks like ICICI Bank, Reliance Industries (RIL), and State Bank of India (SBI).

As the situation evolves, investors and analysts alike are keeping a close watch on developments, with the hope that the market will stabilize and recover from the current turbulence.