The Hindenburg research of the USA is saying something that the Indian stock market doesn’t want to hear. All the investors in the Indian stock market have recently been in tension about the latest update from the Hindenburg research.
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What is The Hindenburg Research and its report?
Well, you may have a question about why this is a cause of tension for the investors of India regarding any news of The Hindenburg Research. If you don’t know about Indian research then let us tell you about the institution.
The Hindenburg Research LLC is situated in the USA and was founded by Nathan Anderson in 2017. The name of the institution was given after the disaster in 1937 which is known as the Hindenburg disaster, according to them that was a human-made disaster that could be avoided. The firm runs a website and on the website the public reports on any corporate port that is happening in the world. The company published reports on various companies. This report also features the defences of the practice of short sales.
Now the question is how their report plays a vital role in the stock market.
As you all know we have already told you that this firm investigates about company reports whether there is any fraud that is going on in any particular company or not.
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If this firm publishes a report regarding any company that is doing business or they think the company is overvalued or something is not good or if they investigate and get a result that something fraud or SCAM is happening in the company then they publish the complete report on their official website. After publishing the report on a particular company, all the investors of the company generally start their short selling of the stock of the company and then the particular company price of a stock falls rapidly.
So why should the investors of the Indian stock market be cautious now?
On the 10th of August 2024, The Hindenburg Research posted on their handle that” something big soon India”. So here is the reason for the tension among the investors of the Indian stock market.
As you all know on January 24 last year Hindenburg Research published a report and criticized the Adani group and just before the publishing time of the report, they planned to share the sale of the Adani enterprise. And after the report, we saw an 86 billion decline in the market value of Adani group stocks.
Not only Adani, but in the past this firm published a lot of reports on various companies like Nikola, Kandi, Lordstown Motors, Clover Health etc. The last report they published was in May 2023 on Icahn enterprise.
So now after the post on X handle. There is a big question after Adani about which company in India, the firm is going to publish its report.
So now after the post on X handle. There is a big question after Adani about which company in India, the firm is going to publish its report.
There are also some speculations about the reality of the Hindenberg research report. Last time Gautam Adani told in a press conference that nothing was wrong in their company, Nothing fraud was going on in their company. Earlier in this year India’s most senior lawyer Mahesh Jethmalani claimed that the report on Adani enterprise was a false report. He said they used Kotak Mahindra Investments Limited to set up a trading account for short-selling Adani shares and made a profit in millions.
So now let’s see when the report comes and what will be the effect on the company after the firm publishes any report.