All ten Adani Group stocks took a hit in early trade on Monday, with Adani Energy dropping by 17 per cent. This drop comes after US short-seller Hindenburg Research made allegations against the Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and her husband, claiming that they had undisclosed investments in offshore funds in Bermuda and Mauritius. These are the same entities that Vinod Adani allegedly used to manipulate stock prices.
Adani Energy Solutions saw a significant decline of 17 per cent, while Adani Total Gas fell by 13.39 per cent, NDTV by 11 per cent, and Adani Power by 10.94 per cent on the Bombay Stock Exchange (BSE). Other Adani Group stocks also experienced losses, with Adani Green Energy down by 6.96 per cent, Adani Wilmar by 6.49 per cent, Adani Enterprises by 5.43 per cent, Adani Ports by 4.95 per cent, Ambuja Cements by 2.53 per cent, and ACC by 2.42 per cent.
Hindenburg Research’s allegations against Buch and her husband have caused a stir in the market and led to a political storm, with calls for Buch’s resignation from opposition leaders. Buch and her husband released a statement denying the allegations, stating that the investments were made in 2015 before Buch’s appointment to SEBI in 2017. They clarified that these investments became dormant upon Buch’s appointment to SEBI and that there is no conflict of interest.
The 30-share BSE Sensex plummeted by 479.78 points to 79,226.13, while the NSE Nifty dropped by 155.4 points to 24,212.10. The market reaction to these allegations and the subsequent denials has been significant, with investors closely monitoring the situation for further developments.
It is essential for investors to stay informed about such developments in the market, as they can have a significant impact on stock prices and overall market sentiment. Transparency and accountability are crucial in maintaining trust in the financial markets, and any allegations of wrongdoing must be thoroughly investigated to ensure the integrity of the system. The coming days will be crucial in determining the long-term impact of these allegations on the Adani Group stocks and the broader market. Investors should exercise caution and monitor the situation closely to make informed decisions about their investments.