Hindenburg effect, Adani Group shares are still far from recovery

Earlier this year, the Hindenburg Report on Adani Group greatly influenced the Indian market. Although since then the Indian Share Market has made a good recovery and regained the old level, but the Adani Group is still far away from recovering from the impact of the Hindenburg Report.

Nifty made complete recovery

Looking at the domestic stock market, on January 24, the NSE Nifty index reached the level of 18,200 points for the first time. American short seller firm Hindenburg Research released its controversial report on Adani Group on 24 January itself. Since then, heavy selling started in the shares of Adani Group. The Indian markets also could not remain unaffected by it and continued to fall victim to it. However, in the business of Thursday i.e. May 4, the Nifty again achieved the level of 18,200 points.

This was the effect of the report

Talking about the Adani group, Hindenburg had made many serious allegations against him, including wrongly raising the price of his shares. After the release of the Hindenburg report, the value of Adani Group’s shares fell by up to 80 percent. The market cap (Adani Group MCap) of the 10 listed companies of the group was reduced by Rs 12.06 lakh. Due to this, Gautam Adani’s net worth had reduced to less than $ 40 billion and he had to suffer a loss of more than $ 80 billion in just one month.

The stock price is so down now

Data from corporate database Ace Equity show that Adani group companies may have shown recovery later, but complete recovery is far away. According to Ace Equity data, the market cap of Adani group companies is still down by 320 per cent from its pre-report level i.e. on January 24. This means that Adani group companies’ shares need to jump up to 320 per cent to completely offset the impact of the Hindenburg report.

Adani Total Gas is behind

According to the data after the market closed on Thursday, Adani Enterprises, the flagship company of Adani Group, needs to climb 80 percent to get the old level. On the other hand, Adani Total Gas has fallen the most by 317.67 percent. Talking about other stocks, Adani Transmission will be able to achieve the old level after a gain of 172 per cent. Adani Green, NDTV, Adani Wilmar, ACC and Ambuja Cement will have to show up to 102 per cent gain to get back to the old level.

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