Stock Market falls amid Hindenburg accusations against SEBI chief

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Sensex plunges in deep red despite rally in Asian markets

By S Jha

New Delhi, August 13: Sensex is trading over 440 points lower on Tuesday after three and a half hours of trade. Nifty is trading with a cut of over 130 points.

A day after ignoring the Hindenburg Research accusation against the SEBI chief Madhani Puri Buch for “massive conflict of interests”, the stock market is showing jittery signs. Bank Nifty was down by over 500 points in the afternoon session.

The rout in the Indian equity market is in contrast to the Asian markets. Japan’s Nikkei was higher by more than three and a half percentages. Other Asian bourses were also trading higher.

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In contrast, the earlier attempts to rescue the Indian bourses failed after the indices gave up all gains to dive deep in the red. The crack in the Indian indices has come despite the five-year low inflation for the month of July.

The consumer price index, a measure of the retail inflation, went below four per cent for the first time in five years. At 3.54 per cent, the retail inflation is now at the level last seen in 2019 only.

But the street ignored the positive inflation cue to pay serious attention to the Hindenburg Research accusations against the SEBI chief. The newspapers have come out with graphics to establish the conflict of interests of Buch.

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By ignoring the positive global cues, the street is indicating that it is now paying a serious attention to the allegations against the SEBI chief. Investors have historically been jittery about conflict of interests by the stakeholders in the stock market.

The bulls are holding hope that the Nifty will hold the lower range of 24000. The Nifty-50 index was trading with just 17 stocks in the green. Sensex was trading with 11 stocks in the green.

The market participants claimed that the frontline stocks are holding the indices from steep fall. Yet, action was seen in select stocks.

Triveni Turbine with stakes in sugar mills was trading higher by 14 per cent. Olectra Greentech share was also trading higher by almost 10 per cent.

Notably, Olectra Greentech is a key player in clean energy urban transport business. The newly-listed Ola Electric was also trading higher despite profit booking.

The semi-conductor player Kaynes technologies was trending higher. This electronics major also has supply chain pact with Ola electric as per media reports.

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