With its latest allegations against the Gautam Adani-led ports and power company, Hindenburg Research has once again hit out at the Adani Group. And this time, the US-based short seller has also included Sebi Chairman Madhabi Puri Buch in its latest salvo.

In his new investigative report, Hindenburg claims that Buch and her husband invested in obscure offshore companies that were involved in the Adani “embezzlement scandal.”

While the Adani Group has denied the latest allegations, calling them “malicious”, “mischievous” and “manipulative”, Sebi chief Madhabi Buch and her husband Dhaval Buch described them as “baseless” and an attempt at “reputation destruction”.

Indian stock market traders are worried about the impact that the latest developments in the Adani-Hindenburg saga will have on the market and whether Adani Group shares will crash like they did last year.

In 2023, when the US short seller published the first allegations of insider trading and other stock market violations by the Adani Group – allegations that have been repeatedly denied by the Gautam Adani-led conglomerate – there was a massive sell-off in the Adani Group’s shares, wiping out its market value by $100 billion.

However, Adani Group shares have since recovered and the group’s market capitalization is now above its pre-Hindenburg disaster peak.

Impact on the stock market

There are 10 listed stocks of Adani Group – Adani Ports & SEZ, Adani Enterprises, Adani Power, Adani Energy Solutions, Adani Green Energy, Adani Total Gas, Adani Wilmar, Ambuja Cements, ACC and NDTV.

Stock market analysts believe that this time it is different and do not expect a major sell-off in Adani Group shares or the overall market due to the recent Hindenburg allegations.

“I don’t expect the recent Hindenburg report to have too much of an impact on the stock market. There may be some initial reaction, but eventually there will be buying in the market,” said Sudip Bandopadhyay, group chairman of Inditrade Capital.

He also does not expect the recent allegations by the US short seller to have a major negative impact on Adani Group shares.

“Adani Group shares will also not be significantly negatively impacted by these recent developments. Shares of Adani Group companies may initially fall but will recover,” Bandopadhyay said.

Avinash Gorakshakar, Head of Research at Profitmart Securities, expressed a similar view and said that markets should not see any negative surprises due to the Hindenburg report on Monday.

“These are just bold allegations without any conclusive evidence, designed to create a stir in the market. I do not expect any major sell-off in Adani Group shares as the market will not take this Hindenburg report seriously,” Gorakshakar said.

He believes that the Indian equity market will continue to witness a liquidity-driven rally with stock-specific action. Moreover, Gorakshakar does not expect any panic selling in the market due to the US short sellers’ report.

According to him, the financials of Adani group companies are strong and earnings are improving. Even if Adani group shares fall a bit initially, Gorakshakar believes they will recover on the back of strong earnings.

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Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms and not of Mint. We advise investors to seek advice from certified professionals before making any investment decision.