Adani-Hindenburg Saga: Turns Out Investors Ignored Rahul Gandhi's Panic Mongering

In a fresh wave of political rhetoric, Rahul Gandhi, the leader of the opposition in the Lok Sabha, has demanded a Joint Parliamentary Committee (JPC) to investigate charges against Securities and Exchange Board of India (SEBI) chief Madhabi Puri Buch, stemming from the latest Hindenburg report. 

Gandhi, sounding alarmist, described the allegations as “explosive” and questioned why Buch had not resigned. His statement included suggestions that the Supreme Court might need to intervene again. 

However, in a striking show of resilience and maturity, the Indian stock market displayed little to no interest in Gandhi's outburst. 

By Monday morning, the S&P BSE Sensex had risen by 247.16 points to 79,953.07, while the NSE Nifty50 maintained stability with a slight dip of 60.55 points, settling at 24,428.05. 

Clearly, Dalal Street investors weren’t buying into Gandhi’s panic-mongering. 

Hindenburg’s latest salvo was aimed not just at Adani Group but at the heart of India’s financial regulatory framework, with SEBI’s chief, Madhabi Puri Buch, and her husband caught in the crosshairs. 

The report alleged that the Buchs held investments in offshore funds linked to the Adani Group, a claim both have vehemently denied. 

Yet, instead of destabilising the market, the Hindenburg report was met with a collective shrug by investors who have grown increasingly weary of Hindenburg’s tactics. 

The Adani Group, which has become a frequent target of Hindenburg, dismissed the report as a “recycling of discredited claims,” noting that the allegations had been thoroughly investigated and dismissed by the Supreme Court in January 2024. 

Despite a slight dip in Adani stocks — Adani Total Gas dropped over 4 per cent, and other Adani entities saw declines ranging from 1per cent to 3 per cent — the broader market remained unshaken. 

Investors, it seems, have learned to separate the wheat from the chaff, opting to buy on dips rather than be swayed by speculative reports. 

SEBI, for its part, issued a statement urging investors to remain calm and exercise due diligence. The regulator also pointed out that Hindenburg has a vested interest in shorting stocks, a fact that seasoned market participants are well aware of. 

As the dust settles, it’s evident that Gandhi’s rhetoric didn't dampen the sentiment on Dalal Street. The market’s reaction — or lack thereof — speaks volumes. 

Despite the opposition's conspiracy claims, investors appear to trust India's financial stability over political rhetoric. Rahul Gandhi's warnings have largely faded into the background, while the market remains steady.