The Adani group of companies, including Adani Enterprises Ltd, Adani Power, Adani Green Energy Ltd, and Adani Energy Solutions Ltd, are in the spotlight today along with shares of 360 ONE WAM Ltd, following fresh reports from Hindenburg Research. The reports suggest alleged links of SEBI Chairperson Madhabi Puri Buch and her husband with an offshore fund tied to the Adani group. While clarifications have been issued by the parties involved, the markets regulator SEBI has urged investors to remain calm and exercise due diligence before reacting to such reports.
Market analysts believe that any impact on the stock market would likely be knee-jerk and short-term in nature. Vinit Bolinjkar of Ventura Securities dismissed the allegations as recycled and desperate, stating that they lack evidence of criminality. He believes that any impact on Adani stocks and the market should be short-lived, with a potential recovery soon after. Similarly, Deepak Shenoy of Capitalmind expressed skepticism about the substance of the report, calling it sensationalism without much merit.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, emphasized that stock prices are ultimately tied to earnings. He noted that unless the Hindenburg report raises issues that could directly impact the Adani group’s earnings, the long-term prospects for the company should remain intact. While the allegations concerning the SEBI Chair are serious, the market analyst highlighted the Chair’s denials and the potential for the issue to become more of a political matter.
SEBI has reassured the public that it has internal mechanisms in place to address conflicts of interest, including disclosure frameworks and provisions for recusal. The Chairperson has made relevant disclosures regarding securities holdings and has recused herself in matters involving potential conflicts of interest.
In conclusion, while the allegations surrounding the Adani group and the SEBI Chair are significant, market analysts believe that the impact on the stock market should be limited in the medium to long term. Investors are advised to exercise caution and consult with a qualified financial advisor before making any investment decisions.