Adani Stocks Plummet by 7% Amid Hindenburg Allegations, Investors Lose ₹53,000 Crore

In a significant market development, Adani Group stocks experienced a sharp decline, with some shares falling up to 7%. This downturn has resulted in a staggering loss of approximately ₹53,000 crore in market capitalization. The decline follows fresh allegations from Hindenburg Research against SEBI chief Madhabi Puri Buch, which have caused widespread concern among investors.

Background of the Allegations

Hindenburg Research, a well-known US-based short seller, has resurfaced with new allegations against SEBI chief Madhabi Puri Buch. The report claims that Buch and her husband, Dhaval Buch, held stakes in offshore funds based in Bermuda and Mauritius. These funds were allegedly used by Gautam Adani’s brother, Vinod Adani, to amass and trade large positions in shares of the Adani Group.

Impact on Adani Stocks

The allegations have led to a significant sell-off in Adani Group stocks. Adani Green Energy was among the worst hit, suffering a 7% loss to hit the day’s low at ₹1,656 on the BSE. Other Adani stocks also faced declines: Adani Total Gas shares were down around 5%, Adani Power by 4%, and Adani Wilmar, Adani Energy Solutions, and Adani Enterprises each fell by approximately 3%. Even Nifty stock Adani Ports saw a decrease of around 2%.

Investor Reactions

The market reaction has been swift, with many investors opting to play it safe amid the controversy. The combined market capitalization of the 10 Adani stocks has now fallen to ₹16.7 lakh crore. This significant loss has raised questions about the stability and future performance of Adani Group stocks.

SEBI’s Response

In response to the allegations, SEBI has issued a statement affirming that Madhabi Puri Buch had made all necessary disclosures regarding her holdings of securities and their transfers. SEBI also stated that Buch had recused herself from matters involving potential conflicts of interest. Despite these reassurances, the market remains jittery, and the controversy continues to attract political attention, with opposition leaders demanding Buch’s resignation and a Joint Parliamentary Committee (JPC) probe into the Hindenburg report.

Conclusion

The recent allegations by Hindenburg Research have once again put Adani Group in the spotlight, leading to significant market losses and investor concerns. As the situation unfolds, it will be crucial to monitor further developments and SEBI’s ongoing investigations. Investors are advised to exercise caution and stay informed about the latest updates.