The Hindenburg report aimed at disrupting India’s stock market has not had the expected impact. On Monday, Indian investors showed their resilience as the market remained positive despite the report. The Securities and Exchange Board of India (SEBI) had advised investors not to focus too much on the short-seller’s report, and this advice seemed to have been heeded.
Market Reaction
Despite fears that the Hindenburg report could lead to a drop in the market, the Indian stock market opened on a positive note. On the first trading day of the week, the market showed strong performance. The BSE Sensex climbed 400.27 points to reach 80,106.18, while the NSE Nifty rose 105.3 points to 24,472.80. Earlier, both indices had experienced a decline but managed to recover.
Government Response
Former Law Minister Ravi Shankar Prasad commented that the Indian economy remained stable despite Hindenburg’s attack. He praised the investors for their confidence in the market. Prasad also criticized the Congress party, accusing it of collaborating with Hindenburg to create economic instability in India. He claimed that the Congress, along with its allies, was involved in spreading economic chaos and hatred against the country.
Political Reactions
BJP leader Kirit Somaiya also targeted the Congress party, suggesting that Hindenburg might have connections with Congress leader Rahul Gandhi. Somaiya questioned why Gandhi did not mention that SEBI was investigating the Hindenburg report.
Investor Confidence
The domestic market was unaffected by the global trends and the influx of foreign capital. Despite initial declines, the Indian stock market showed strong recovery, with major companies like JSW Steel, Infosys, HDFC Bank, Axis Bank, Kotak Mahindra Bank, and Tata Motors performing well.
Overall, the Indian stock market’s stability and investor confidence proved resilient in the face of the Hindenburg report’s allegations.
