UNVEILING MARKET DYNAMICS: A COMPREHENSIVE STUDY OF THE HINDENBURG REPORT'S EFFECT ON ADANI'S FINANCIAL LANDSCAPE

Abstract

The Adani Group was accused of concealing vital operating details, inflating revenues, and exaggerating their rapport with authorities in a study published by Hindenburg Research on June 14, 2021. “The stock prices of Adani firms traded on Indian stock markets were significantly impacted negatively by this article. Our goal here is to dissect the effects of the Hindenburg report on Adani stock prices and market cap to see how they stack up. The research has many goals, one of which is to analyze how the stock price and market value of Adani Group have changed since the release of the Hindenburg report. It also aims to determine whether or whether any investors persisted in purchasing Adani Group shares notwithstanding the sharp decrease in stock prices that followed the release of the report on the company's financial performance. This study examines the effect of the Hindenburg report on the stock market and market capitalization of Adani Group using secondary data. The study adopts a descriptive research approach to investigate the situation. The study employs a comparative study approach, providing bar and line graphs based on financial and stock price records obtained in January 2023, to evaluate the impact of the Hindenburg report on Adani Group stocks and market capitalization both before and after its release. The results of the analysis will be reported in terms of irregular movements in the stock prices of Adani firms and shifts in their market capitalization. The study will also calculate the proportion of loss experienced by the Adani Group's listed firms in the stock market and market capitalization, as well as present an analysis of the performance of Adani companies before and after the release of the Hindenburg report. The study's ultimate goal is to provide light on how adverse media coverage affects Adani Group's stock price and market worth. The need of openness and truthful reporting in the financial markets will also be more appreciated.