Hindenburg Research says something ‘big’ soon on India
Recently the famous short-seller firm of Hindenburg Research claimed that it is planning to release a big report on India and ever since there have been a lot of buzz and a sense of unease. Answer: The firm which earlier jolted markets by alleging fraud in the business group led by Adani in early 2023, thus causing a loss of nearly $100 billion in market value for the conglomerate, is now teasing another story that may move the market again.
The detail of the upcoming report has not been disclosed yet, but previously, Hindenburg’s reports have usually brought the targeted companies stocks down by as much as 20%-40%. For example, their report on Nikola Corporation dated back to 2020 made the company’s stock drop by over 40% in weeks subsequent to the allegations.
In India it is a similar story because Hindenburg’s previous report had a significant effect, which is why participants in the market are interested in avoiding similar outcomes. Currently, the total market capitalization of the Indian market is approximately at $ 3 trillion that makes stock market for India very attractive. The cuts were indicated to be at a level of $5 trillion and would therefore experience fluctuation depending on the form of the report. Especially, infrastructure, energy, and financial industries are of interest to investors because large-scale companies function in these areas and might be on Hindenburg’s list.
Just by saying that something ‘big’ is being planned by both Hindenburg, traders and investors have already begun buying and selling stocks and increasing the volatility of those stocks with the hope of being the next target. Given the extent of the Hindenburg influence…married to the overall size of India’s financial markets – the report due could be significant.
Any further hints or details given in the future are expected to release by Hindenburg and market analysts are waiting for it to occur massive market swings that could wipe multiple billion dollars in market value depending upon the nature and reach of market manipulation investigations.
