Even after the higher anticipations that the market will react brutally towards the Hindenburg report over SEBI chief, the it showed resilience on Monday.
The stock markets during mid-trading, shrugged off concerns raised by the recent Hindenburg report.
Despite opening with a slight dip, both the BSE Sensex and Nifty 50 indices managed to recover during mid-day trading, moving into positive territory, indicating investor confidence and market strength.
Trading day began with a cautious sentiment with the markets opening lower. The
Nifty 50 index started at 24,320.05, down by 47.45 points or 0.19%, while the BSE Sensex saw a more significant drop, opening at 79,296.67, down by 409.24 points or 0.69%.
The markets quickly recovered from this initial decline, with both indices bouncing back into the green as the trading session progressed.
Notably, the recovery highlights the market’s resilience and the broader investor sentiment that appears to be largely unaffected by the Hindenburg report.
Interestingly, even stocks of the Adani Group, which were expected to be the most affected, showed only minor fluctuations, reinforcing the market’s dismissal of the report.
SEBI had also urged investors to remain calm and conduct thorough research before reacting to the Hindenburg Research report.
“Investors should remain calm and exercise due diligence before reacting to such reports. Investors may also like to take note of the disclaimer in the report that states that readers should assume that Hindenburg Research may have short positions in the securities covered in the report,” the SEBI said in a statement.
On Sunday, in a joint statement, the SEBI chief and her husband thrashed all the allegations made by the US short-seller.
Specifically on the 2015 investment, the duo said, “The investment in the fund referred to in the Hindenburg report was made in 2015 when they were both private citizens living in Singapore and almost 2 years before Madhabi joined SEBI, even as a Whole Time Member.”
“The decision to invest in this fund was because the Chief Investment Officer, Anil Ahuja, is Dhaval’s childhood friend from school and IIT Delhi and, being an ex-employee of Citibank, JP Morgan and 3i Group plc, had many decades of strong investing career,” it added.