Unusually, Hindenburg — a short-seller that makes money when stocks fall — is attacking a market regulator, rather than a specific stock.
This report is from this week's CNBC's"Inside India" newsletter which brings you timely, insightful news and market commentary on the emerging powerhouse and the big businesses behind its meteoric rise. Like what you see? You can subscribeNo one is questioning India's sovereignty, as the world's largest democracy marks 77 years of independence from British colonial rule today.
On Monday, the first day of trading after the allegations were made over the weekend, Adani group companies initially lost more than $13 billion in market value. By the end of the day, the group's market losses were at $2.4 billion — or 1.2% — while the "The accusations can have a harmful impact if they spark worries over institutional credibility at a time when foreign inflows are volatile and concerns are rising over expensive valuations of the Indian stock market," Shumita Deveshwar, chief India economist at TS Lombard, told CNBC's Inside India.
However, investors should not forget that India is an emerging market and carries some inherent risks as a result, according to Mohit Kumar, chief financial economist at Jefferies.
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