India’s stock market has bounced back as the world’s fifth largest after losing the position to France in January as the Adani Group shares surged today, according to a Bloomberg report.
Market capitalization of Indian stocks stood at $3.3 trillion as on Friday, on the back of brisk buying by foreign funds. France, on the other hand, lost more than $100 billion in market value last week as luxury goods makers such as LVMH Moet Hennessy Louis Vuitton and Vivendi saw a sell-off on fears of a slowdown in China and the US, the report stated.
Foreign funds have been investing in Indian stocks as the economy is still growing at a robust pace amid the worldwide slowdown and considered one of the bright spots by multilateral institutions such as the IMF and economic experts.
The prices of Adani Group shares have staged a strong comeback as investors has turned optimistic after the Supreme Court-appointed committee examining the Hindenburg allegations gave a clean chit to the company and observed that there was no regulatory failure on the part of market regulator SEBI.
The market capitalisation of the Ahmedabad-based group is went past the Rs 10 lakh crore mark on Monday.
On the other hand, the committee had pointed out that several entities took short positions prior to the publication of Hindenburg’s report and benefitted by squaring off their positions as the prices plummeted. This needs to be investigated, the report states.
Key findings of the Supreme Court Committee:
*Adani Group has disclosed all beneficial owners
*No charge by SEBI that they are rejecting Adani’s declaration of beneficial owners.
*Retail shareholding of Adani has gone up after the Hindenburg report.
*No prima facie violation of existing rules or laws found.
*There were short selling profits made by some entities after the Hindenburg allegations which need to be investigated.