Indian investors shrugged off the latest allegations from Hindenburg Research against SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, as the benchmark indices ended largely flat on Monday. This defied predictions of an imminent market crash by several observers, including Leader of Opposition Rahul Gandhi.
In a video message released Sunday, Gandhi called for Prime Minister Narendra Modi to announce a Joint Parliamentary Committee (JPC) probe into the serious charges against Buch, asserting that the integrity of SEBI, the securities regulator tasked with protecting small retail investors' wealth, had been seriously compromised.
Despite the negative report, the Sensex showed resilience, briefly surging over 300 points and crossing the 80,000 mark during intra-day trading. At the close, the Sensex was down 57 points at 79,648, while the Nifty fell 20 points to end at 24,347.
Market experts attributed the Indian equity market's stability to its strong fundamentals and anticipated easing in consumer price index (CPI) inflation, which is expected to be bolstered by a favorable monsoon season.
“The market dismissed the Hindenburg-SEBI claims, taking positive cues from global markets. The ongoing bull run’s buy-on-dips strategy remains effective,” experts noted.
Earlier in the day, SEBI advised investors to remain calm and exercise due diligence, suggesting that Hindenburg Research might hold short positions in the securities discussed in the report.
SEBI Chairperson Madhabi Puri Buch and her husband issued a detailed response to the allegations, accusing Hindenburg Research of attempting to undermine SEBI’s credibility and engage in character assassination. They emphasized that the contested investment occurred before Madhabi Puri Buch’s tenure at SEBI.
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