Rs 53,000 crore loss! Adani stocks fall up to 7% as investors play safe after Hindenburg resurfaces

As many investors chose to play it safe following allegations leveled against Sebi chief Madhabi Buch in the Adani vs Hindenburg controversy, shares of Adani Group companies fell up to 7% this morning only to recover some of the losses later on in the day. Investors lost around Rs 53,000 crore with the combined market capitalization of 10 Adani stocks falling to Rs 16.7 lakh crore.

Adani Green Energy shares were among the worst hit as it suffered a loss of 7% to hit the day's low at Rs 1,656 on BSE. The stock rebounded smartly later on in the day and was trading higher by around 1% in the afternoon.

Adani Total Gas shares were down around 4%, while Adani Wilmar, Adani Energy Solutions, and NDTV were trading around 2-3% lower. Shares of Nifty stock Adani Ports was down around 2% while the conglomerate's flagship entity Adani Enterprises was down by around 1%.


While the Hindenburg report raises no fresh charges against the Adani Group, it has alleged that Sebi chief Buch and her husband Dhaval Buch had stakes in Bermuda and Mauritius-based offshore funds used by Gautam Adani's brother Vinod Adani “to amass and trade large positions in shares of the Adani Group”.

As the report raised questions on whether Sebi can be trusted as an objective arbiter in the Adani matter, the issue has again attracted political attention with Opposition leaders demanding Buch's resignation and the JPC probe on the Hindenburg report.

Also read | Explained: Who are the Hindenburg guys and why are they after Sebi chief Madhabi Puri Buch

Buch has denied all allegations and Sebi has issued a statement saying Buch had made relevant disclosures required in terms of holdings of securities and their transfers from time to time. "Chairperson has also recused herself in matters involving potential conflicts of interest," the statement said.

Market analysts have dismissed the report as "sensationalism" and say that it will not have much impact on stock prices.

"It appears that this “revelation” is unlikely to impact the market meaningfully. The buy on-dips strategy which has been working well in this bull run is likely to work again," said Dr. V K Vijayakumar of Geojit Financial Services.

In the days to come, Adani investors would also be tracking news related to the completion of Sebi investigation on Hindenburg's last year report.

Sebi said out of the 24 matters it was investigating, one more investigation was completed in March 2024, and one remaining investigation is close to completion.

"During the ongoing investigation in this matter, more than 100 summons, around 1,100 letters and emails have been issued to seek information. Further, more than 100 communications have been made seeking assistance from domestic/foreign regulators and external agencies. Also more than 300 documents containing around 12,000 pages have been examined," it said.

The regulator also attempted to reassure investors by advising them to exercise due diligence before reacting to such reports.

Some market participants feared a repeat of the market crash that followed the January 2023 Hindenburg report, which had leveled serious charges of stock manipulation, siphoning funds, and other corporate governance issues against the airports-to-edible oil conglomerate.

At a broader level as well, Hindenburg 2.0 failed to have much of an impact as Sensex was trading 400 points lower with heavyweights ICICI Bank, RIL, and SBI leading the downside.