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Hindenburg’s new report: How is the stock market likely to react today?
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Hindenburg’s new report: How is the stock market likely to react today?

12 August 2024, 07:41 IST

Market experts predict short-term impact of the Hindenburg allegations on the stock market; Adani Group shares in focus.

Sensex and Nifty have witnessed volatility over the past week on global concerns about a looming recession in the US. Market experts expect the fresh allegations by US short-selling firm Hindenburg against Sebi chief Madhabi Puri Buch and her husband Dhaval Buch to impact the stock market today, so investors and traders should brace themselves for more volatility.

Gautam Adani, chairman of the Adani Group, is seen. (Reuters)
Gautam Adani, chairman of the Adani Group, is seen. (Reuters)

Therefore, Adani Enterprises Ltd, Adani Power, Adani Green Energy Ltd and Adani Energy Solutions Ltd are among the 10 Adani Group stocks to watch today, along with shares of 360 ONE WAM Ltd. Listed REITs are also in focus as Hindenburg claimed that Sebi has proposed and implemented a number of REIT laws.

Will there be a massive crash in the stock markets?

Market analysts believe that any impact on the stock market, if any, would be knee-jerk and short-term in nature. Vinit Bolinjkar of Ventura Securities said Hindenburg “is recycling the same old thing. They are trying to link one event to another without providing evidence of criminal activity. It is old wine in new bottles, recycled and desperate.”

Deepak Shenoy of Capitalmind said in a post on X (formerly Twitter): “That’s not the case, I feel like they’ve basically gone into sensationalism. There’s hardly any substance.”

Kranthi Bathini, director of equity strategy at WealthMills Securities, said, “Most of the claims made in the report are already known to the market. Such reports have been circulating for some time. Apart from a possible knee-jerk reaction of a day or two, I doubt that the new report will have any significant impact on the earnings potential of the Adani group in the medium to long term.”

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