Shares of Adani group companies fell between 2.5 per cent and 17.1 per cent in intra-day trade before recouping most of the losses on Monday. The turbulence came after a new report by US-based Hindenburg Research alleging conflicts of interest involving the Sebi chairperson, hindering the probe.
The market value of the Gautam Adani-led ports-to-airport conglomerate fell as much as Rs 1.2 trillion but recovered lost ground to end Rs 20,000 crore lower at Rs 17 trillion.
The group’s two most valuable firms, flagship Adani Enterprises and Adani Ports & Special Economic Zone—both part of benchmark Nifty—ended 1.1 per cent and 2 per cent lower, respectively.
On Saturday, Hindenburg Research published a report questioning the objectivity of Sebi chairperson Madhabi Puri Buch, stating that she owned a ‘stake’ in an offshore entity allegedly used by the Adani group to siphon off funds and inflate stock prices. Sebi, Buch, and the Adani group have claimed the allegations are baseless and misleading.
Industry players said the knee-jerk reaction in the opening trade was due to concerns that Sebi may soon pass strictures against the Adani group.
In a statement on Sunday, the market regulator said only one out of the 24 investigations against the Adani group was pending. Sebi has also issued show-cause notices to several Adani group firms for disclosure lapses during the March 2024 quarter.
“Hindenburg’s first report in January 2023 was an unknown devil. Now, it’s more on expected lines. However, whenever such reports are issued, people panic and sell. The detailed rebuttal from the Sebi chairperson and the absence of adverse comments from the government have helped sentiment,” said Ambareesh Baliga, independent equity analyst.
Meanwhile, the benchmark Sensex fell as much as 480 points, or 0.6 per cent, in intra-day trade but ended at 79,649, down 57 points, or 0.07 per cent, over its Friday close. The Nifty ended the session at 24,347, with a drop of 21 points, or 0.08 per cent. Adani Ports was the biggest loser among Nifty components.
Gains in technology and financial heavyweights Infosys, HDFC Bank, and Axis Bank helped markets recover from the day’s lows.
The market breadth was mixed, with 2,187 stocks declining and 1,899 advancing. Foreign portfolio investors (FPIs) were net sellers worth Rs 4,681 crore, and domestic institutions were buyers worth Rs 4,478 crore.
First Published: Aug 12 2024 | 8:33 PM IST
