August 12th 2024.
On Monday, the stock markets in Mumbai experienced a day of volatility, with investors becoming cautious due to concerns over potential disruptions caused by a US short-seller report. The report, released by Hindenburg Research, focused on SEBI chairperson Madhabi Puri Buch and her husband's undisclosed investments in offshore funds located in Bermuda and Mauritius.
Despite early declines, the 30-share Sensex was able to recover and close at 79,648.92, a decrease of 56.99 points or 0.07%. In the morning, the index had dropped by 479.78 points or 0.60%, reaching a low of 79,226.13. However, it later saw a significant increase of 400.27 points or 0.50% to 80,106.18. Unfortunately, towards the end of the day, the BSE benchmark slipped back into negative territory and ended lower.
Similarly, the NSE Nifty also experienced a dip of 20.50 points or 0.08% to close at 24,347. Throughout the day, it hit a low of 24,212.10 and a high of 24,472.80.
Vinod Nair, Head of Research at Geojit Financial Services, commented on the day's events, stating, "The Indian market concluded relatively flat, with its initial path being eclipsed by the continuation of the Adani-Hindenburg-SEBI saga. However, the market tried to brush away these noises, taking positive cues from global markets."
Out of the 30 companies listed on the Sensex, Adani Ports, NTPC, Power Grid, State Bank of India, Nestle, Mahindra & Mahindra, Reliance Industries, and Tata Consultancy Services were the biggest losers. On the other hand, Axis Bank, Infosys, JSW Steel, Tata Motors, HDFC Bank, and Kotak Mahindra Bank were among the gainers from the blue-chip pack.
Over the weekend, Hindenburg Research released a report alleging that SEBI chairperson Madhabi Puri Buch and her husband had undisclosed investments in offshore funds located in Bermuda and Mauritius. These same entities were also allegedly used by Vinod Adani, the elder brother of group chairman Gautam Adani, to round-trip funds and inflate stock prices. In response, Buch and her husband released a statement denouncing Hindenburg's claims, calling it an attack on the credibility of SEBI and an attempt at character assassination.
The Adani Group also responded, calling the allegations malicious and manipulative, stating that they have no commercial relationship with Buch or her husband. During early trade, all 10 Adani Group stocks saw a sharp decline, with Adani Energy Solutions dropping 17% and Adani Total Gas decreasing by 13.39%. By the end of the day, eight of the group's firms ended lower, while two saw a rebound.
In other global markets, Seoul and Hong Kong closed in the positive territory, while Shanghai ended lower. Markets in Tokyo and Bangkok were closed for a holiday. In Europe, markets were mostly trading higher, while US markets ended higher on Friday.
After several days of offloading equities, Foreign Institutional Investors turned buyers on Friday, purchasing equities worth Rs 406.72 crore, according to exchange data. Additionally, the global oil benchmark, Brent crude, climbed 0.83% to USD 80.32 a barrel.
On Friday, the BSE benchmark saw a rebound of 819.69 points or 1.04% to reach 79,705.91, while the NSE Nifty soared 250.50 points or 1.04% to 24,367.50.
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