The Sensex surged by over 300 points during intra-day trading, briefly surpassing the 80,000 mark, demonstrating Indian investors’ confidence in the market’s robust fundamentals and the broader economic growth.
Indian investors dismissed the latest allegations from Hindenburg against SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, as the benchmark indices ended Monday largely flat, defying predictions of a market crash from figures like Leader of Opposition Rahul Gandhi.
In a video message on Sunday, Rahul Gandhi urged the Prime Minister to announce a Joint Parliamentary Committee (JPC) probe into the allegations, stating that the integrity of SEBI, the regulator responsible for protecting the wealth of small retail investors, had been compromised by these serious charges.
Contrary to expectations, the Sensex even surged over 300 points during intra-day trading, briefly crossing the 80,000 mark, signaling the confidence of Indian investors in the market’s strong fundamentals and the overall economic outlook.
At the close of trading, the Sensex dipped just 57 points to 79,648, while the Nifty dropped 20 points to end at 24,347.
Market experts noted that the Indian equity market demonstrated resilience despite the allegations against the SEBI chairperson. They highlighted that the domestic stock markets largely dismissed the claims in the report.
“The market shrugged off the noise from the Hindenburg-SEBI issue, taking positive cues from global markets. Additionally, expectations of easing CPI inflation and a favorable monsoon are bolstering market sentiment,” experts observed.
Earlier, analysts suggested that the Hindenburg report was unlikely to have a significant impact on the market, with the buy-on-dips strategy continuing to perform well during the current bull run.
On Sunday, SEBI advised investors to remain calm and exercise caution when responding to reports like Hindenburg’s, cautioning that the research firm might hold short positions in the securities mentioned in its report.
Madhabi Puri Buch and Dhaval Buch issued a detailed response to Hindenburg’s accusations, expressing disappointment that the firm chose to attack SEBI’s credibility rather than addressing the show cause notice. The couple firmly rebutted all allegations, emphasizing that the contested investment was made before Madhabi’s tenure at SEBI.
