Indian markets open in red; Adani Group stock drops on Hinderburg revelations

Bengaluru: Indian shares opened lower on Monday, with Adani group stocks falling after US short-seller Hindenburg Research alleged the head of the country's markets regulator held stake in offshore funds used by Adani group. The NSE Nifty 50 index was down 0.36% at 24,278.6, as of 9:22 am, and the S&P BSE Sensex shed 0.34% to 79,427.67.

Over the weekend, US-based Hindenburg alleged that Madhabi Puri Buch, the head of the Securities and Exchange Board of India, previously held investments in offshore funds also used by the Adani Group.

Buch denied the allegations and said all investments had been duly disclosed. In a separate statement, the markets regulator asked investors to remain calm and exercise due diligence before reacting to the report.

On the day, all of the 10 listed companies of the Adani group fell between 2% and 8%. Adani Enterprises and Adani Ports fell about 5% each and were the top losers on the Nifty 50 index. The allegations do not have any major implications for the Indian market as a whole, said two analysts, adding that any knee-jerk reaction will be short-lived.

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