After dropping for a second month in January as a result of a damning study by US short-seller Hindenburg Research on billionaire Gautam Adani’s empire, a key share benchmark is now rising back toward an all-time high.
According to a Bloomberg News survey of fund managers, both of India’s major equity indices are expected to conclude the year at higher levels than they are now as a result of strong domestic demand driving up corporate profitability. May Surprise You There is a problem with Adani and the Indian market: they area Mumbai-based investment manager at Alder Capital, Rakhi Prasad, said.
Source: Bloomberg Television
Because many Indian companies’ governance standards are on par with those around the world and because identical issues can be found in many other nations, she claimed that the Adani selloff is not an issue specific to India.
The collapse of ten Adani enterprises, which has already reduced the aggregate market value of those companies by more than $130 billion, may prove to be a temporary roadblock in India’s growth story as the country strives to experience the fastest growth among the world’s major economies. Some believe that rather than being a short-lived Lehman moment, the scrutiny the country’s corporate governance scene has undergone since the Hindenburg report may turn out to be a long-term good.
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