Stock Market: Nifty, Sensex fall sharply after Hindenburg’s allegations on SEBI chief, Adani shares suffer the biggest loss
Stock Market: The key stock market indices, Nifty and Sensex, didn’t do so well on August 12, following their impressive run in the session prior. The cautious start was brought on by a claim from US short-seller Hindenburg Research. They put out there that Sebi chairperson, Madhabi Puri Buch, might have stakes in offshore bodies connected to Adani. This set off a ripple of uncertainty in the market. By 9:20 a.m., Nifty dropped by 0.4 percent to 24,285. Sensex followed, also down by 0.4 percent at 79,437. Stocks were in a tizzy—1,180 soared, 1,556 took a dive, and 206 remained as still as a pond.
Adani shares came in the headlines
Stakeholder at WealthMills Securities, Kranti Bathini, felt the report would stir things up but wouldn’t rock the market too much. She made it clear it won’t mess with companies’ earnings. If that were to happen, then we’d have a few more problems on our hands. Gautam Adani’s businesses were in the limelight. All of them were on a downward trajectory. Major player Adani Enterprises crashed 4 percent. And Adani Ports and Special Economic Zone slipped over 2 percent. Others, Adani Green, Power, and Total Gas, all dropped 4 percent each. Foreign money holders actually bought shares worth Rs 406 crore on August 9.
Other stocks fell by 0.2 and 0.1 per cent
On the same day, domestic money holders scooped up shares for a whopping Rs 3,979 crore. Other markets, known as midcap and smallcap, also dipped by 0.2 and 0.1 percent. Despite the worry about high valuations, they performed better than benchmarks, climbing around 23 percent this year. Nifty hasn’t been as lucky, noting only about 13 percent increase. The Nifty realty index was the only one rising, up by 0.4 percent. Every other index lost ground, metals and auto hardest hit. Stocks of Adani Enterprises, JSW Steel and Tata Steel broke with the drop. Choice Broking’s research analyst, Hardik Matalia, thinks if Nifty stays above 24,400, it might make it to 24,550-24,650.
