The Hindenburg-Adani case has caused a stir in the Indian stock market, with Benchmark Nifty-50 and S&P BSE Sensex experiencing volatility over the past week. The market may see an impact on Monday as a knee-jerk reaction to fresh allegations made by the US short seller firm against SEBI Chief Madhabi Puri Buch and her husband Dhaval getting roped into the case. Market experts are not ruling out some correction in the initial phases of trading, as sentiments are likely to be impacted by these allegations.
Ambareesh Baliga, an independent market expert, believes that there will be some impact on the market, but it remains to be seen if fresh buying will come in at lower levels to provide support. The Head of Retail Research at a domestic brokerage, speaking on condition of anonymity, mentioned that the timing of the allegations being made on a weekend when the markets are closed may help dilute some of the negative impact on investor sentiments. However, there will still be some impact, and the market will need to be closely monitored to see how it reacts to the news.
SEBI Chief Madhabi Puri Buch has vehemently denied the allegations made by Hindenburg, calling them baseless. Many industry experts and veterans have also come out in support of Buch, stating that the allegations are unfounded. Mohandas Pai, former CFO of Infosys, has publicly backed Buch and criticized Hindenburg Research. This support for Buch may help stabilize the market after the initial knee-jerk reaction on Monday.
G Chokkalingam, Founder & Head of Research at Equinomics Research Pvt Ltd, believes that the allegations by Hindenburg may impact perception-driven stocks but will not affect the growth story or earnings of companies. Stocks trading at reasonable valuations may not see any impact, but small caps and mid caps trading at high valuations could be at risk if the market corrects.
In conclusion, while the Hindenburg-Adani case has caused volatility in the market, it is important for investors to seek advice from certified experts before making any investment decisions. The market may experience some weakness in morning trades on Monday, but the long-term impact will depend on how the situation unfolds. Stay informed and cautious in these uncertain times.