Adani Group stocks were among most hit on Monday as Indian stocks extended losses from the previous week in the early morning trade.
This comes after Hindenburg Research came up with fresh allegations against Sebi Chairperson Madhabi Puri Buch and husband Dhaval Buch for allegedly holding stakes in Adani Group-linked offshore fund.
However, the plunge exprienced by the Adani Group stocks was not as worse as the January 2023 crash after Hindenburg's initial allegations against the Gautam Adani-led conglomerate came to the fore. The crash had wiped out $150 billion in market cap across 10 listed Adani Group companies.
On Monday, at 10 am, Adani Power Ltd was trading 4.26 per cent lower while Adani Enterprises saw 4.7 per cent dip. Adani Green Energy was trading at 4.1 per cent dip while Adani Energy Solutions saw 4.24 per cent dip and Adani Ports and SEZ at 2.73 per cent dip.
Securities and Exchange Board of India (Sebi) had earlier urged investors to remain calm and exercise due diligence before making decsions based on Hindenburg Research's report.
After Sebi's clarification and rebuttals by its chairperson Buch and her husband, the US short sell hit back again, saying the couple's denial contains significant "admissions" and confirms a "massive conflict of interest".
Rahul Gandhi has called for a Joint Parliamentarty Committee probe into the allegations while the Congress demanded resignation of Buch as Sebi chief. Gandhi had alleged that Sebi's integrity has been "gravely compromised" and there was significant risk in the stock markets.
BJP's Amit Malviya on Monday slammed Rahul Gandhi, saying the Leader of Opposition is now openly inciting and seeding doubt about the genuineness of the Indian stock markets. "This blatant attempt to undermine confidence in our economy reveals the true intention of Rahul Gandhi, which is nothing but the destruction of India," he alleged.
