Key indices shrug off Hindenburg’s charges

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 - Vinod Nair, Head of Research, Geojit Financial Services

Volatile trade :

♦ Sensex falls 56.99 pts or 0.07% to 79,648.92

♦ Nifty dips 20.50 pts or 0.08% to 24,347

♦ Adani Ports, NTPC, Power Grid, SBI biggest laggards.

♦ Axis Bank, Infosys, JSW Steel, Tata Motors gain

Mumbai: Stock markets closed marginally lower in highly volatile trade on Monday as gains in private banks helped benchmark Sensex recoup some of the early losses inflicted by allegations against Sebi chief Madhabi Puri Buch and her husband by the US short-seller Hindenburg Research.

The 30-share Sensex closed lower by 56.99 points or 0.07 per cent at 79,648.92 with 18 of its constituents ending with losses and 12 with gains. The index had declined by 479.78 points or 0.60 per cent to a low of 79,226.13 in morning trade due to losses in Adani group shares and blue-chips like Reliance Industries. The benchmark later staged a sharp recovery climbing around 880 points from the day’s lows to hit a high of 80,106.18. But at the fag-end, the BSE benchmark slipped into the negative territory and closed lower.

The NSE Nifty dipped 20.50 points or 0.08 per cent to 24,347. Intra-day, it hit a low of 24,212.10 and a high of 24,472.80. “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,” said Vinod Nair, Head of Research, Geojit Financial Services.

From 30 Sensex firms, Adani Ports, NTPC, Power Grid, State Bank of India, Nestle, Mahindra & Mahindra, Reliance Industries and Tata Consultancy Services were the biggest laggards. Axis Bank, Infosys, JSW Steel, Tata Motors, HDFC Bank and Kotak Mahindra Bank were among the gainers from the blue-chip pack. Hindenburg Research on Saturday alleged that SEBI chairperson Madhabi Puri Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani - the elder brother of group chairman Gautam Adani - to round-trip funds and inflate stock prices.

Buch and her husband issued a statement calling Hindenburg’s latest tirade an attack on the credibility of SEBI and attempted “character assassination”. Adani Group on Sunday termed Hindenburg Research’s latest allegations as malicious and manipulative of select public information, saying it has no commercial relationship with the SEBI chairperson or her husband. All the 10 Adani group stocks declined sharply during the early trade, with Adani Energy Solutions tumbling 17 per cent and Adani Total Gas dropping 13.39 per cent. At close, eight of the group firms ended lower, while two of them bounced back.