Adani Enterprises, Adani Power, 360 ONE WAM: Will Sensex, Nifty, stock market investors stay calm today?

Adani Enterprises Ltd, Adani Power, Adani Green Energy Ltd and Adani Energy Solutions Ltd are among 10 Adani group stocks that would be in focus today, and so would be shares of 360 ONE WAM Ltd, following Hindenburg Research’s fresh reports where it suggested alleged links of SEBI Chairperson Madhabi Puri Buch and her husband with an offshore fund tied to the Adani group. Listed REITS would also be in focus after Hindenburg claimed SEBI proposed and implemented a raft of REIT legislation, of significant benefit to Blackstone as one of the largest REIT sponsors in India, whom Buch’s husband worked for.

While the Buchs, the Adani group and the 360 ONE WAM Ltd (which managed the offshore funds) have issued clarifications, the markets regulator SEBI came out with a release saying: “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.”

Will stock market investors pay heed to the markets regulator is to be seen today. Market analysts so far believe any impact, if at all, would be knee-jerk and short-term in nature.

SEBI said the markets regulator had by January 3 completed twenty–two out of twenty–four investigations into the Adani group. Subsequently, one more investigation was completed in March 2024, and one remaining investigation is close to completion.

Vinit Bolinjkar of Ventura Securities does not see Hindenburg allegations as serious. “They are recycling of the same thing. They are trying to connect one event around and into the other, without giving any evidence of criminality. It is old wine in a new bottle, recycled and desperate.”

Bolinjkar said though the report could have some impact on Adani stocks and the market in the short term, they should recover soon. Bathini said any steep fall in Adani group stocks could be a buying opportunity.

“Thoda zyada ho gaya, I feel, basically they have gone into sensationalism. There is hardly any substance,” Deepak Shenoy of Capitalmind said in a post on X.

Stock prices are slaves to earnings, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

Bathini noted that he would be more concerned if the Hindenburg report raised issues that could impact the Adani group’s earnings. He remarked that aside from the allegations concerning the SEBI Chair, “Most of the claims in the report are already known to the market. Such reports have circulated for some time. Except for a potential knee-jerk reaction lasting a day or two, I doubt the fresh report will significantly harm the Adani group’s earnings potential in the medium to long term.”

A market analyst, who did not wish to be named, said the allegations on a sitting SEBI Chair are serious. “This could be the first time that fingers are being pointed at the sitting SEBI Chair. It can impact markets as, whatever said and done, the allegations are serious. They have denied it, and it is expected. This could turn into more of a political issue,” he said.

Later, SEBI said it has an adequate internal mechanisms for addressing issues relating to conflict of interest, which include disclosure framework and provision for recusal.

“It is noted that relevant disclosures required in terms of holdings of securities and their transfers have been made by the Chairperson from time to time. Chairperson has also recused herself in matters involving potential conflicts of interest.”