Experts, Markets Expected to Stabilize Next Week, SEBI Report, Stock Market, India

“An investigation has already been launched by SEBI. Let’s wait for its report which will make it very clear what is what,” the expert told ANI. Asked about the massive sell-off of Adani Group shares caused by a Hindenburg Research Report, he told ANI: “A foreign agency had submitted a report saying there were some manipulations and they are having issues with the debt levels of the group. And , they had taken a short position in the market.”

The Adani Group has accused the New York-based investment firm of “stock manipulation and accounting fraud”. the overall sentiment of the market went down,” Kuanwala said.

The market expert pointed out that this had caused panic among investors in recent days and after the close of the market session on Friday, the SEBI had ordered more investigation into the matter.

“Let’s see, by next week the market should stabilize,” said the expert.

During the last two trading sessions on Wednesday and Friday, the Adani Group has lost Rs 4.17 lakh crore in market capitalization. According to Kuanwala, markets are generally influenced by news. Now, this is serious news, that’s why the markets reacted – the big (investors), the small, everybody reacted. When there’s negativity, the reactions are sharper and that’s why the selling pressure and the reactions are heavy. Buyers just leave and the share price cannot sustain it.” Shares of several Indian banks and the Life Insurance Corporation of India also plummeted on Friday amid concerns about their exposure to the Adani Group.

When asked why shares of the LIC had also fallen, the market analyst said the country’s largest insurer had bought a stake in the Adani Group companies. “So again, it’s a cascading effect. The investors thought why did this company take a stake in the company,” he said. company say a lot. It has a good presence and goodwill.”

The expert said that the investors are wondering why LIC took a stake in the Adani Group companies. He said: “Sales pressures have also hit LIC. But LIC as an individual company is a strong, robust company and the largest in life insurance.”

KK Mittal, a stock market expert, said, “The sell-off of shares of Adani Company is taking place after the publication of the Hindenburg group report. They (Hindenburg group) are essentially short-sellers and are speculating on the stock market by selling short .This report is also published just a day before when the Adani Group came out with its FPO (Follow-up offering).So there is definitely a naughty bet on it.the investor losses where people were talking about LIC are imaginary…I’m sure that LIC must have acquired the shares a long time ago at a very low cost, so for now it’s an imaginary loss, but they must be sitting on a huge profit on Adani shares, and they must have made a steady profit because their acquisition costs are low. And whatever we’re talking about, it’s a fictional loss.’

He said: “The market capitalization of the Adani group has fallen. So there is a notional loss, but it is not a recorded loss.” As advice, he said, “I think investors should wait. Don’t panic sell the stock because Hindenburg has done this to other companies in the past. They published reports and short-sold the market. There are ulterior motives.” He said :” This way they make a lot of money in the stock market by speculating and betting on stocks. So I don’t know ethically to what extent it is correct that before publishing such reports they initiate their selling position in the market and based on that they are trying to manipulate the market.” Stock market expert DK Mishra said, “Because of this report of the study, Sensex and Nifty had crashed. It has particularly impacted Adani as it has an overall market share in the common Nifty and Sensex indices The impact is temporarily quite high for a day or two trading session.”

Mishra said, “A lot of money has been wiped out. I don’t foresee much downturn now because within these two to three days when the market is out, people will get time to study and then make a good, well-considered phone call.” He said: “Thanks to our regulatory authorities in the Indian stock market, everything is very intact – the market is very intact and the growth story of the country is intact. So at this level, I feel there is nothing to panic as the market will be stabilizing.” Mishra said, “As far as LIC (Life Insurance Corporation of India) is concerned, it is a systematic investor group. LIC is not the kind of institution that has invested suddenly or at a high price. Institutions like LIC are entering the market on a very sustainable basis regularly.” Regarding their exposure to the Adani group companies, Mishra said, “Whatever has been invested, they hold out for a period of time. As the company grows, the valuation of shares also goes to a very high level.”

He added: “So any corrections in the Adani Group will certainly hit the investment, but at the moment it is a notional loss for now. But any loss on sales cannot be counted until the shares are sold or realized.”

He said, “Until then, I don’t think the investors need to panic. Gradually, the market will stabilize, the share price of Adani Companies will stabilize. And this imaginary loss will be partially or fully recovered to some extent.” (ANI)