Hindenburg effect: Adani Wilmar shares fall for fourth session; trading in oversold zone

Shares of Adani Wilmar fell for the fourth straight session today after a report by Hindenburg Research alleged accounting frauds, stock manipulations and money laundering by the Adani Group. Adani Wilmar shares crashed 5 per cent to Rs 466.90 amid negative sentiment in the broader market today. The stock has lost 18.53% in the last four sessions. It opened 5% lower and was stuck in the lower circuit in early trade. Market cap of Adani Wilmar plunged to Rs 60,681 crore.

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In terms of technicals, the relative strength index (RSI) of Adani Wilmar stands at 29.9, signaling the stock is trading in oversold territory. Adani Wilmar stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

With today’s fall, the stock is down 24.43 percent in 2023. A total of 0.36 lakh shares of the firm changed hands, amounting to a turnover of Rs 1.65 crore on BSE.

Meanwhile, Abu Dhabi-based diversified conglomerate International Holding Co (IHC) said it would invest $400 million into the follow-on public offer (FPO) of Adani Enterprises. The investment commitment from IHC comes at a time when the mega FPO of billionaire Gautam Adani’s flagship company is struggling to sail through after the massive sell-off in stocks last week.

In an exclusive interview to Business Today, the Adani Group has accused Hindenburg Research of not doing proper research, and “copy-pasting” from the company disclosures. It also said that they either did not do proper research or did proper research but misled the public. Adani Group Chief Financial Officer Jugeshinder Singh told Managing Editor, Business Today Television, Siddharth Zarabi. Hindenburg needs to be questioned why they misrepresented in the questions they asked Adani Group in their report, Singh said.

A report by Hindenburg Research alleging accounting frauds, stock manipulations and money laundering last week led to negative sentiment around the Adani Group stocks in the last three sessions. Adani Group called Hindenburg's report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors.

Adani Group had said that the timing of the Hindenburg report’s publication clearly betrays a brazen, mala fide intention to undermine the group’s reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India.

Meanwhile, Sensex was trading 352 points or 0.59 per cent lower at 59,148 and Nifty lost 90 points to 17,559 at 10:10 am today.

Also read: Adani Enterprises shares jump 5% after IHC investment; Adani Total, Adani Green, Adani Wilmar extend fall

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