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Stock markets closed marginally lower in a highly volatile trade on Monday (August 12, 2024) as investors turned cautious about the potential disruptions from the U.S. short-seller Hindenburg Research report on SEBI chairperson and her husband’s undisclosed investments in obscure offshore funds in Bermuda and Mauritius.

Recovering from early lows, the 30-share Sensex closed lower by 56.99 points or 0.07% to settle at 79,648.92. The index had declined by 479.78 points or 0.60% to a low of 79,226.13 in morning trade. The benchmark later staged a sharp recovery climbing 400.27 points or 0.50% to 80,106.18. But at the fag-end, the BSE benchmark slipped into the negative territory to close lower.

Also read | Hindenburg allegations: Adani group stocks tumble

The NSE Nifty dipped 20.50 points or 0.08% to 24,347. Intra-day, it hit a low of 24,212.10 and a high of 24,472.80.

“The Indian market concluded relatively flat, with its initial path being eclipsed by the continuation of the Adani-Hindenburg-SEBI saga. However, the market tried to brush away these noises, taking positive cues from global markets,” said Vinod Nair, Head of Research, Geojit Financial Services.

From 30 Sensex firms, Adani Ports, NTPC, Power Grid, State Bank of India, Nestle, Mahindra & Mahindra, Reliance Industries and Tata Consultancy Services were the biggest laggards.

Axis Bank, Infosys, JSW Steel, Tata Motors, HDFC Bank and Kotak Mahindra Bank were among the gainers from the blue-chip pack.

Hindenburg Research on Saturday alleged that SEBI chairperson Madhabi Puri Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani – the elder brother of group chairman Gautam Adani – to round-trip funds and inflate stock prices.

Ms. Buch and her husband issued a statement calling Hindenburg’s latest tirade an attack on the credibility of SEBI and attempted “character assassination”.

Adani Group on Sunday termed Hindenburg Research’s latest allegations as malicious and manipulative of select public information, saying it has no commercial relationship with the SEBI chairperson or her husband.

All the 10 Adani group stocks declined sharply during the early trade, with Adani Energy Solutions tumbling 17% and Adani Total Gas dropping 13.39%. At close, eight of the group firms ended lower, while two of them bounced back.

In Asian markets, Seoul and Hong Kong settled in the positive territory while Shanghai ended lower. Markets in Tokyo and Bangkok were closed for a holiday.

European markets were trading mostly higher. The US markets ended higher on Friday.

Foreign Institutional Investors (FIIs) turned buyers on Friday after days of offloading equities. They bought equities worth ₹406.72 crore, according to exchange data.

Global oil benchmark Brent crude climbed 0.83% to $80.32 a barrel.

The BSE benchmark bounced back 819.69 points or 1.04% on Friday settling at 79,705.91. The NSE Nifty soared 250.50 points or 1.04% to 24,367.50.

All the ten Adani group stocks slumped in early trade on Monday (August 12, 2024), with Adani Energy tumbling 17 per cent, after the US short-seller Hindenburg Research alleged that SEBI chairperson Madhabi Puri Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani to round-trip funds and inflate stock prices.

Stocks of Adani Green Energy declined 6.96 per cent, Adani Wilmar slumped 6.49 per cent, Adani Enterprises tumbled 5.43 per cent, Adani Ports dived 4.95 per cent, Ambuja Cements skidded 2.53 per cent and ACC dipped 2.42 per cent.

Hindenburg Research had on Saturday alleged that SEBI chairperson Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani – the elder brother of group chairman Gautam Adani – to round-trip funds and inflate stock prices.

Buch and her husband issued a statement calling Hindenburg’s latest tirade as an attack on the credibility of SEBI and attempted “character assassination”.

In the equity market, the 30-share BSE Sensex tanked 479.78 points to 79,226.13. The NSE Nifty dropped 155.4 points to 24,212.10.

Buch and her husband Dhaval Buch in a joint statement on Sunday said the investments were made in 2015, well before her appointment as a whole-time member of SEBI in 2017 and the subsequent elevation as chairperson in March 2022, and in capacity as “private citizens living in Singapore”. These funds became “dormant” on her appointment in SEBI.

“SEBI was tasked with investigating investment funds relating to the Adani matter, which would include funds Ms Buch was personally invested in and funds by the same sponsor which were specifically highlighted in our original report. This is obviously a massive conflict of interest,” Hindenburg said.