The new charges by US-based short seller company Hindenburg Research caused Adani Group stocks to fall up to 17% in early trading on Monday.
The Adani group's shares fell after Hindenburg Research alleged on Saturday that whistleblower papers revealed Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch had an interest in the obscure offshore organizations utilized in the 'Adani money siphoning controversy'.
Following these assertions, the Adani group's stocks fell. Adani Power declined 1.82% to Rs 682.75 on the Bombay Stock Exchange (BSE). Adani Enterprises decreased by 1.31% to Rs 3,145.90.
Adani Energy Solutions had the most decrease in early trading, falling 17.06% to Rs 915.70 before slightly rebounding. It was down 2.99% at Rs 1,070.80 as of 12:12 PM.
Adani Green Energy fell 1.17% to Rs 1,760.10 at 12:12 PM.
Adani Total Gas fell 13.39% to Rs 753, but recovered to Rs 829.85, down 4.55%. Other Adani stocks also slumped, with Adani Wilmar falling 2.88% to Rs 374.05 and Adani Ports down 1.74% to Rs 1,507.10.
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Vinit Bolinjkar of Ventura Securities believes that the recent Hindenburg claims are not very significant.
He referred to them as "recycling of the same thing," implying that the accusations are being offered again without significant fresh proof. Bolinjkar believes the study would have a brief impact on Adani shares, but he anticipates a recovery shortly.
"They're rehashing the same stuff. They are attempting to link one occurrence to another while providing no evidence of criminal activity. It's old wine in a new bottle, recycled and desperate."
Bolinjkar stated that while the research may have a short-term impact on Adani stocks and the market, he expects them to recover fast. Bathini said that a substantial decrease in Adani group equities may be an excellent purchasing opportunity.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated that stock prices are inextricably linked to earnings.
Bathini stated that he would be more concerned if the Hindenburg report raised problems that may have an impact on the Adani group's profitability.
He stated that, aside from the charges against the SEBI Chair, "the majority of the assertions in the report are previously known to the market. Such knowledge has been around for a time. Unless there is a fast reaction, I do not believe the latest study will have a long-term impact on the Adani group's profits potential."
