Hindenburg’s latest allegations fizzle, Indian markets ignore flimsy claims
Indian investors largely shrugged off the latest allegations from Hindenburg Research against SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, as the benchmark indices ended Monday’s trading session largely flat.
This reaction defied predictions of a significant market downturn, including those made by Leader of Opposition (LoP) Rahul Gandhi.
In a video message released on Sunday, Rahul Gandhi had called for a Joint Parliamentary Committee (JPC) probe into the allegations against the SEBI Chairperson.
Gandhi argued that the integrity of SEBI, which is responsible for safeguarding the wealth of small retail investors, has been severely compromised by the charges. Despite these concerns and the scrutiny surrounding the report, the Indian stock market showed resilience, maintaining stability amid the controversy.
Sensex surged over 300 points during the intra-day trading and even crossed the 80,000 level for a short period, reflecting the trust of the Indian investors in the market’s strong fundamentals and overall economic growth.
At close, Sensex was down just 57 points at 79,648 and Nifty was down 20 points to close at 24,347.
Market experts have observed that the Indian equity market demonstrated notable resilience in response to the recent allegations by Hindenburg Research against SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch. Despite the negative report, domestic stock markets largely dismissed the claims.
“The market effectively brushed off the Hindenburg-SEBI controversy, drawing positive signals from global markets,” said experts. They noted that the anticipation of easing Consumer Price Index (CPI) inflation, bolstered by a favorable monsoon, has further supported market stability.
Earlier in the day, analysts had predicted that the Hindenburg report would have minimal impact on the market. The prevailing “buy-on-dips” strategy, which has been successful during the current bull run, is expected to continue proving effective. The Indian market’s reaction underscores its capacity to withstand external pressures and focus on fundamental economic indicators.
SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, issued a comprehensive rebuttal on Sunday to the accusations made by US short-seller Hindenburg Research. In their detailed statement, the Buchs expressed dismay that instead of addressing the show-cause notice, the short-seller chose to attack SEBI’s credibility and engage in what they described as a character assassination of the SEBI Chairperson.
The statement, released in their personal capacity, refuted the allegations point by point. The couple highlighted that the contested investment in question occurred before Madhabi Puri Buch’s tenure at SEBI. Their response aimed to clarify the situation and counteract what they perceived as a deliberate attempt to undermine the integrity of SEBI and its leadership.
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West crossed its limits & losing its entire credibility.