Hindenburg effect: Adani Power shares fall for third straight session

Adani Power shares decline for a third straight day due to the Hindenburg effect.

In spite of today's optimistic market tone, shares of Adani Power fell 5% to Rs 236.65. In the past three trading days, the stock has decreased by 15%.

Adani Power shares fell for a third straight session in early trade after a study by Hindenburg Research accused of accounting crimes, stock manipulations, and money laundering by the Adani Group. Shares of Adani Power were locked in the lower circuit. In spite of today's optimistic market tone, shares of Adani Power fell 5% to Rs 236.65. In the past three trading days, the stock has decreased by 15%.

Adani Power stock is trading lower than the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. With today’s fall, the stock is down 21.29 percent in 2023.

Adani Power's market value fell to Rs 90,888 crore. On the BSE, the stock debuted 5% down. The price of Adani Power stock is below the moving averages of the past five, twenty, fifty, hundred, and two hundred days. The stock is down 21.29 percent in 2023 after today's decline. However, even after taking into account today's price, the stock has increased 122.52% in a year.

The Adani Group accused Hindenburg Research of not conducting adequate research and "copy-pasting" from the business filings in an exclusive interview with Business Today. Additionally, it said that they either conducted inadequate research or did so but mislead the public. Jugeshinder Singh, the chief financial officer of the Adani Group, spoke with Siddharth Zarabi, managing editor of Business Today Television. According to Singh, Hindenburg needs to explain why they lied about the inquiries they made of the Adani Group in their report.

The Adani Group equities have seen negative sentiment over the past three days as a result of research by Hindenburg Research last week that alleged accounting crimes, stock manipulations, and money laundering. Adani Group referred to Hindenburg's study as purposefully deceptive and unresearched, claiming that it had a negative impact on shareholders and investors.

The Hindenburg report's timing, according to Adani Group, clearly reveals a brazen, malicious aim to damage the group's reputation with the primary goal of undermining Adani Enterprises' follow-on public offering, which is the largest FPO in Indian history.

At 9.56 am today, the Sensex was up 52 points, or 0.08 percent, at 59,382, and the Nifty was up 47 points, at 17,651.