New Delhi: Sensex and Nifty saw a decrease in early trade on Monday due to investor concerns over potential impacts of a US short-seller's report on SEBI chairperson and her husband's undisclosed investments in offshore funds in Bermuda and Mauritius. In the early trading session, the 30-share BSE Sensex dropped 375.79 points to 79,330.12. The NSE Nifty fell by 108.25 points and reached 24,259.25.
Adani Ports, NTPC, Power Grid, State Bank of India, ICICI Bank, and Titan were among the worst-performing companies in the 30 Sensex firms. In the initial trading session, the stocks of all 10 companies belonging to the Adani group saw a decrease, notably Adani Enterprises, Adani Green Energy, Adani Total Gas, and Adani Power.
Hindenburg Research claimed on Saturday that SEBI chairperson Madhabi Puri Buch and her spouse had undisclosed investments in little-known offshore funds in Bermuda and Mauritius, which were supposedly utilized by Vinod Adani, brother of group chairman Gautam Adani, to manipulate funds and artificially boost stock prices. Buch and her husband released a statement denouncing Hindenburg's recent outburst as an assault on SEBI's credibility and a deliberate attempt to smear their character.
In the trade on Friday, Nifty made a robust comeback after the recent losses, showing a notable recovery. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, stated that even though the market sentiment has improved, investors are still wary of possible disruptions, particularly the upcoming Hindenburg Research report from the US. Asian Paints, JSW Steel, Tata Motors, and Maruti were some of the winners in the blue-chip group.
Seoul and Hong Kong were trading positively in Asian markets, while Shanghai was trading lower. Friday saw a rise in the US markets.Within the domestic sphere, the Hindenburg report is expected to be released and is likely to have a negative impact. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that this "revelation" is not expected to have a significant impact on the market.
After selling stocks for several days, Foreign Institutional Investors (FIIs) began purchasing equities on Friday. According to data from the exchange, equities worth Rs 406.72 crore were purchased by them. Brent crude, the international oil benchmark, rose by 0.10 pc to reach USD 79.74 per barrel. On Friday, the BSE benchmark recovered 819.69 points, a 1.04 percent increase, closing at 79,705.91. The NSE Nifty surged by 250.50 points, representing a 1.04 percent increase, reaching 24,367.50.
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