Dalal Street remains resilient despite Hindenburg's allegations against SEBI chair

Adani Group stocks face volatility, but most recover losses as Indian markets remain optimistic amid global cues and anticipated ease in inflation.

Hindenburg alleges SEBI Chairperson, her husband had hidden stakes in obscure offshore funds with links to Adani scandal

NEW DELHI: Contrary to expectations that the latest report of US short-seller Hindenburg Research, which has questioned the conduct of the Sebi chairperson while inspecting the Adani Group for manipulating stock prices would have a wider impact on the Indian equity market, the bulls of Dalal Street sidelined the concerns as the benchmark indices closed on Monday with just minor cuts.

At close, BSE Sensex was down 56.99 points or 0.07% at 79,648.92, and NSE Nifty fell 20.5 points or 0.08% to settle at 24,347. In the broader market, the mid and smallcap index showed resistance and closed in green.

“The market exhibited a mild optimism, though the initial path was eclipsed by the continuation of Adani-Hindenburg-SEBI saga. However, the market brushed away these noises, taking positive cues from global markets,” said Vinod Nair, head of research at Geojit Financial Services.

He added, “Moreover, the domestic market is anticipating ease in CPI inflation, which is going to be supported by a good monsoon. Yet, the upside risk remains, given firm oil prices and volatility in food inflation.” Adani Group stocks, named by Hindenburg in its report, had a tough day. Adani Enterprises, Adani Ports, Adani Power, Adani Energy Solutions, and other shares fell when the session started but managed to recoup most of the losses. While two stocks -- Adani Green and Ambuja closed with mild gains, the remaining eight fell up to 4%.

Hindenburg on Saturday alleged that SEBI Chairperson Madhabi Buch and husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani, elder brother of Gautam Adani, in what it calls the money siphoning scandal. Report added that it is due to this reason that the capital market regulator was not interested in inspecting the Adani Group.

Buch and husband issued a statement on Sunday calling Hindenburg’s latest tirade as an attack on the credibility of Sebi and attempted “character assassination”.

Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates, said benchmark indices opened lower on Monday due to uncertainty stemming from the allegations against Buch and her husband. He added that despite this uncertainty, markets displayed resilience.