Hindenburg vs Adani: In the light of the recently erupted Hindenburg issue, the stocks of Adani Group have been specially volatile after witnessing a massive selling spree
Days after the Adani Group witnessed the ripple effects of the Hindenburg Research report, the Indian borus National Stock Exchange (NSE) has reportedly revised the circuit limits of two of Adani Group firms. These include Adani Green Energy Ltd. and Adani Transmission Ltd.
As per a Reuters report, the NSE has revised the circuit limits for Adani Green Energy and Adani Transmission to 5 per cent. However, last week, the price bands of both companies were revised to 10 per cent from 20 per cent.
The report adds that usually, the stock exchanges set the circuit limits to prevent large movements in the price of stocks in a very short time. In the light of the recently erupted Hindenburg issue, the stocks of Adani Group have been specially volatile after witnessing a massive selling spree.
Shares of the Adani Group companies have been in a free-fall ever since the Hindenburg vs Adani rout erupted. Last week, in an effort to increase market surveillance, the NSE also placed Adani Ports, Adani Enterprises and Ambuja Cements under the ASM framework to control any more volatility.
After witnessing havoc on most fronts, if not all, the Adani Group was already navigating tricky waters that valuation guru Aswath Damodaran came in its support. In an explosive blog post, Damodaran asserted that Hindenburg may have indulged in hyperbole when it called the whole Adani issue as the biggest con in the history. While the valuation guru agreed that the markets were overvalued, he also added that for big companies like Adani, taking huge amounts of debt was normal.