Adani Group shares dropped by up to 17% on Monday morning as many investors played it safe following allegations against SEBI chief Madhabi Buch in the Adani vs. Hindenburg controversy. This resulted in investors losing around Rs 53,000 crore, with the total market capitalization of the 10 Adani stocks falling to Rs 16.7 lakh crore.
Green Energy Plummets 7%, Leading Losses Among All Adani Stocks
Adani Green Energy shares were hit the hardest, dropping 7% to a low of Rs 1,656 on the BSE before recovering some losses. Total Gas shares fell about 5%, Adani Power dropped 4%, and Adani Wilmar, Adani Energy Solutions, and Adani Enterprises were trading around 3% lower.
Shares of Nifty stock Adani Ports fell by about 2%, making it the second biggest loser on the blue-chip index after Adani Enterprises, the conglomerate’s flagship entity.
Although the Hindenburg report did not present any new charges against the Group, it claimed that SEBI chief Madhabi Buch and her husband Dhaval Buch held stakes in Bermuda and Mauritius-based offshore funds.
Hindenburg Report Questions SEBI’s Impartiality
The report questioned SEBI’s ability to act as an impartial arbitrator in the Adani case, drawing political attention once again. Opposition leaders are now demanding Madhabi Buch’s resignation and a Joint Parliamentary Committee (JPC) investigation into the Hindenburg report.
Buch has denied all the allegations, and SEBI has stated that she made all necessary disclosures about her securities holdings and transfers. The statement also mentioned that the chairperson recused herself from matters involving potential conflicts of interest. Market analysts have dismissed the report as “sensationalism,” saying it won’t significantly impact stock prices.
Dr. V K Vijayakumar from Geojit Financial Services said that this “revelation” is unlikely to have a significant impact on the market. He noted that the strategy of buying on dips, which has been effective during this bull run, is likely to continue working.
Investors Await SEBI’s Investigation Outcome; Hindenburg 2.0 Has Minimal Impact
In the coming days, investors will be watching for news about the completion of SEBI’s investigation into last year’s Hindenburg report. SEBI stated that out of the 24 matters under investigation, one was completed in March 2024, and another is nearly finished.
The regulator tried to reassure investors by advising them to exercise due diligence before reacting to such reports. Some market participants feared a repeat of the January 2023 market crash, triggered by the Hindenburg report, which accused the airports-to-edible oil conglomerate of stock manipulation, siphoning funds, and other corporate governance issues. Overall, Hindenburg 2.0 had little impact, as the Sensex was trading 400 points lower, with major stocks like ICICI Bank, RIL, and SBI leading the decline.
