MarketBuzz
1312: Marketbuzz Podcast with Kanishka Sarkar: Hindenburg report, Adani stocks in focus amid positive global cues
Good morning everyone. Welcome back to CNBC TV18's Market Bus Podcast. This is your host Kanishka Sakkar bringing you top developments from around the world ahead of today's trading session. A ghost without saying that a new report released over the weekend by Hindenburg research will be in focus today. The US-based shop seller has alleged that the market regulator Sebi's reluctance to act against the Adani group might be linked to its chief Madhavi Puri Burj having stakes in offshore funds associated with the conglomerate. However, in response, Burj has labelled the claims as baseless and characterised them as an attempt at character assassination. Hindenburg accused Burj and her husband of holding undisclosed investments in obscure offshore funds located in Bermuda and Mauritius. Entities reportedly utilised by Vinod Adani, the elder brother of group chairman Gautam Adani to engage in round-tripping of funds and inflate stock prices. This yet again has put the Adani group companies in the spotlight for Monday's trading session. Shares of most Adani group companies have already recovered all the losses they made after the first Hindenburg report in January 2023. The Adani group is also responded to the report by saying that their overseas holding structure is fully transparent and that the group has no commercial relationship with individuals or matters mentioned in the report. Moving on, the nifty 50 heads are into a truncated week after what has been an extremely volatile week gone by. With the turn of events over the weekend, the upcoming holiday shortened week also promises to be nothing less. It was a relatively steady end to last week on Friday with the nifty closing above 2350. Although it could not prevent a second straight weekly loss, it managed to claw back most of that on Friday with a 250-point search. Barring the Adani group companies, reads will be in focus as Hindenburg's new report also claims that Sebi's regulations on reads benefited Blackstone, which is the sponsor of the three out of four Indian listed reads. Blackstone is also where Sebi chairperson's husband, Dhaval Butch was a senior advisor. The report alerts that Sebi chair promoted reads as an investment product to benefit Blackstone. Meanwhile, PSU stocks will be in focus as well. ParaDynamics join the list of PSU earnings disappointing the street after RVNL, Iqon and even BHEL. Coated Trippia has turned out to be the only outlier so far. Coated security is Amul Athavali believes that the larger texture of the market is still weak, and as long as the nifty trades above 24200, the pullback formation is likely to continue up to 24,525 levels or even 24,625 levels. On the downside, a break below 24200 can lead to further selling pressure towards 24000 he says. Meanwhile, the handover from Wall Street has been largely positive with benchmark indices ending Friday's session with moderate gains. This morning, shares in Asia opened higher as market shifted focus to Yi-US data prints this week for further insight into the health of the world's biggest economy. The yen pulled further off the seven month high it touched last week. Equity benchmarks for Australia and South Korea both gained while stock futures for Hong Kong slipped. Contacts for US equities were little changed early in early Asian trading after the S&P 500 climbed half a percent on Friday. Meanwhile, Japan was closed for a public holiday. Elsewhere in Asia, traders would be focused on China's one-year medium-term lending rate as well as retail sales and industrial production data this week to gauge whether the nation's economy is finding traction. However, it is likely that the focus on Monday for the Indian markets will be the Hindenburg report which may cloud an on-the-ment sentiment for equities instead of global queues which have been the focal point all through last week. In other news, Ola Electric closed with gains of 17 percent post its listing on Friday. The union cabinet has cleared eight new railway line projects worth over 24000 crore rupees. And in the Paris Olympics, India ended at the 71st position, whereas US-PIP China to the top spot. In terms of global news, a Republican VP nominee, JD Once, has backed political decision-making on Fed policies. The Chinese state council has issued guidelines for green transition and set bold targets. Saudi Arabia has announced new policies to increase transparency and attract investments. Also, Elon Musk is expected to interview Donald Trump today. Lastly, Hamas has refused to participate in ceasefire talks later this week. Well, that's all for now. This is Qadash Qasad Kar signing off. Stay tuned to CNBC TV18 for more news and news.