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US-based short seller Hindenburg Research's latest post on X has once again sparked widespread discussion within the Indian stock market community.
In a recent post, Hindenburg wrote, "Something big soon India," possibly hinting at a new report involving an Indian company.
Something big soon India
— Hindenburg Research (@HindenburgRes) August 10, 2024
In January 2023, Hindenburg released a report accusing the Adani Group of orchestrating "the largest con in corporate history." The report led to an $86 billion loss in Adani Group's market capitalization.
In June this year, SEBI revealed the ties between Hindenburg Research and New York hedge fund manager Mark Kingdon.
SEBI said that Hindenburg shared an advance copy of its Adani report with Kingdon about two months before its public release, allowing for substantial profits through strategic trading.
Hindenburg responded to SEBI's notice, calling it "nonsense" and accusing the regulator of trying to silence those who expose corruption in India.
In its response, the short seller pointed out that SEBI's notice conspicuously avoided naming Kotak Bank, despite its alleged involvement in offshore fund structures related to the Adani Group. Hindenburg also claimed that SEBI might be protecting powerful Indian businessmen from scrutiny.
Kotak Mahindra Bank denied any involvement or knowledge of Kingdon’s activities, while Kingdon Capital defended its right to engage in research agreements that allow the use of reports before they are made public.
Netizens reaction
While the post has sparked significant discussion, many believe that this time the report won’t have much impact on the Indian stock market or on any particular company it might target.
"Hindenburg has no credibility left now. They have been exposed by SEBI," a user wrote.
"Who cares now? Credibility lost !!!" another said.
"Simple business strategy of Hindenburg- - First sell a company stocks - Than publish a fake report on that company - Company stocks start falling. - Book profit. - Repeat same strategy with another company. But I don't think this is possible now. Adani destroyed Hindenburg credibility heavily," a third remarked.
Hindenburg is once again shorting the Indian market and economy, but it isn’t accounting for the fact that since its last report in January 2023, our markets have not only recovered, but the SENSEX has rallied by 20,000 odd points.
— Dilip Mandal (@Profdilipmandal) August 10, 2024
Advice: No need to panic. pic.twitter.com/yztnqYA8ej
Do you have any credibility? 🤣
— Manish Sharma 🇮🇳 (@manish_sharmaaa) August 10, 2024
Poor western jealous ppl 🔥🔥✌️
When Hindenburg exposed the Adani group, market reacted for a week and later saw huge rally giving handsome returns to investors
— Atul Modani (@atulmodani) August 10, 2024
Hindenburg also said its clients didn't earned much with adani expose and the quantum of gain was ₹ 35 Crores only
Nothing major came out of…