Sensex, Nifty fall amid weak global cues, Hindenburg’s allegation unlikely to trigger panic

Benchmark stock market indices opened weaker on Monday due to weak global cues but Hindenburg Research’s latest allegations against Securities.

And Exchange Board of India (Sebi) chief Madhabi Puri Buch and her husband are unlikely to have a major impact on Dalal Street.

The S&P BSE Sensex was down 234.35 points at 79,471.56 at 9:22 am, while the NSE Nifty50 lost 64.50 points to trade at 24,303.

However, most of the broader market indices were trading in negative territory as the US short seller’s allegations have led to a marginal spike in market volatility.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “Global as well as domestic factors are likely to influence the market this week. Globally stock markets will be keenly watching the US consumer data and the core CPI numbers which will indicate the strength/ weakness of the US economy.”

“Stability in yen indicates that the fears surrounding the yen carry trade are behind us. Therefore, the likely trends in the US macros and the Fed rate cut expectations are likely to influence markets much more than any other factors,” he noted.

“Domestically, he noted that there is the latest Hindenburg report, but added that it is unlikely to impact the markets.

“It appears that this “revelation” is unlikely to impact the market meaningfully. The buy-on-dips strategy which has been working well in this bull run is likely to work again,” he added.

Both Sebi and Madhabi Puri Buch have issued statements against Hindenburg’s latest allegations after it received a show-cause notice from the market regulator earlier this year.

In its statement, Sebi had also asked market participants and investors to remain calm, advising them to conduct proper due diligence before believing the latest allegations by the US short seller.