Indian markets remained steady on Monday, despite the recent allegations made by Hindenburg Research against SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch.
Contrary to predictions of a market downturn, including warnings from Leader of Opposition Rahul Gandhi, the benchmark indices closed the day with minimal changes, signaling investor confidence in the country’s economic stability.
Rahul Gandhi, in a video statement on Sunday, called on the Prime Minister to initiate a Joint Parliamentary Committee (JPC) investigation into the allegations, citing concerns about the integrity of the securities regulator.
He expressed that the accusations against the SEBI chief could undermine the trust of small retail investors in the financial system.
However, the market reaction on Monday told a different story.
The Sensex rose by over 300 points during the day, briefly crossing the 80,000 mark, before closing just 57 points lower at 79,648.
The Nifty index also saw a slight dip, ending the day down by 20 points at 24,347.
These movements reflect the market’s underlying strength and the continued confidence of Indian investors.
Market Resilient Despite Hindenburg Report; Buoyed By Global Cues
Market analysts noted that the domestic equity market showed remarkable resilience, largely ignoring the negative report by Hindenburg.
“The market dismissed the noise around the SEBI allegations, drawing strength from positive global cues and expectations of easing CPI inflation, supported by a good monsoon,” experts commented.
Earlier in the day, some analysts had predicted that the Hindenburg report would have little impact on the markets, advising investors to continue with the buy-on-dips strategy that has proven effective during this bullish phase.
In response to the allegations, SEBI urged investors to remain calm and not be swayed by inaccurate reports.
The regulator reminded investors that Hindenburg Research might have short positions in the securities mentioned in their report, suggesting that the research firm could benefit from any negative market reactions.
Madhabi Puri Buch and her husband also issued a detailed rebuttal, addressing the allegations head-on.
They emphasized that the disputed investment took place before Madhabi’s tenure at SEBI, and criticized Hindenburg for attempting to tarnish the credibility of the regulator and engage in character assassination.
The couple’s response, coupled with the steady performance of the markets, highlights the strength of the Indian financial system and the trust investors continue to place in its regulatory framework.
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