Stock market news: BSE Sensex, Nifty50 open in red on Hindenburg report; Adani shares fall

BSE Sensex Today Live Updates: Report is not very negative for Dalal Street: Market players

Dalal Street is unlikely to react negatively on Monday to the latest report by Hindenburg Research, which cites alleged conflicts of interest on the part of SEBI Chairwoman Madhabi Puri Buch.

Traders, dealers and fund managers TOI spoke to, as well as those who commented in private social media groups, were more annoyed with a US trader betting on the value of the stock than with pointing fingers at individuals and entities mentioned in the report.

Market players believe that first, in Hindenburg’s second report, unlike the first, the “shock value” was lost. After the first report in January 2023, in about five weeks, the Adani Group lost about 65% of its total market value. Since then, most of this loss has been recovered. Also, investigations to probe Hindenburg’s allegations against the Adani Group have mostly failed to yield any results.

As a result, “Hindenburg has become a toothless entity,” said Arun Kejriwal, director of KRIS, an investment advisory firm. “Nobody believes Hindenburg any more,” he said.

Kejriwal also feels that this repeated attempt by Hindenburg to disrupt the Indian market sets a bad precedent. “It is high time India takes up this matter with IOSCO and initiate legal action against it (Hindenburg) and the people behind it.” IOSCO, the International Organization of Securities Commissions, is an association of securities regulators worldwide.

Market participants believe that negative global factors, such as geopolitical issues or global market instability, could have a greater impact on Wall Street trading in the coming week than the Hindenburg report.