Hindenburg-Adani case: Here’s how the Indian stock market is expected to open today post fresh allegations

Hindenburg-Adani case: Benchmark Nifty-50 and S&P BSE Sensex that have seen volatility during last one week, on multiple concerns may see an impact on Monday as a knee Jerk reaction. Some correction in initial phases is not ruled out by market experts, as sentiments get impacted by fresh allegations of the US short seller firm against SEBI Chief Madhabi Puri Buch and her husband Dhaval getting roped into the case.

Some weakness in morning trades not ruled out

The investors and traders may brace for more volatility feel experts who do not rule out some weakness in the early phases of trading at least on Monday

Ambareesh Baliga , an independent market expert said that there will definitely be some impact , though one will thereafter need to watch out for whether fresh buying into the market comes at a lower level, as a support.

The positive is that the allegations by Hindenburg against the SEBI chief Madhabi Puri Buch and her husband Dhaval have been made on a weekend, when markets are closed, said an Head of retail Research at a domestic brokerage, on condition of anonymity. As per the HOR, a large part of any negative impact on investor sentiments may get diluted in more than a day since the allegations were made on Saturday night while market will open on the Monday morning Nevertheless there will definitely be some impact. The market will thereafter be watched, and how the noise is made by the opposition parties or various other such factors may be watched for said the expert.

Sebi Chief terms allegations as baseless while other experts also support

The US firm Hindenberg that had levelled allegations against the Adani Group in last year, has now linked SEBI chairperson Madhabi Puri Buch and her Husband Dhaval Buch to the episode.

SEBI India Chief Madhabi Puri Buch in a statement, said that “In the context of allegations made in the Hindenburg Report dated August 10,2024 against us, we would like to state that we strongly deny the baseless allegations and insinuations made in the report".

Many experts and Industry veterans too have  come in support SEBI Chief and said Hindenburg allegations are baseless. Mohandas Pai, former CFO of Infosys and a prominent industry voice on various issues, has publicly backed Buch and criticized Hindenburg Research

In this context some experts feel that after knee Jerk reaction, market may stabilize on Monday.

Risk on mid and small caps higher if market corrects

G Chokkalingam, Founder & Head of Research, Equinomics Research Pvt Ltd is of the view that Hindenburg's statements are only accusations. In terms of market impact, it can impact perception driven stocks. The allegations do not impact the growth story , nor the earnings and hence the stocks trading at reasonable valuations may see no impact. In case of correction, some small caps, mid caps that are trading at high valuations can see and impact, said Chokkalingam.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions