Investment lessons from Adani stocks crash
- Post the Hindenburg report, fundamental changes have kicked in. Retail investors will struggle to gauge its impact
- What goes up fast, can come down faster. Given the low free-float and low liquidity, there weren’t enough buyers of Adani Group stocks when the sentiment turned
On 25 January, at around 8.15 am India time, US-based Hindenburg Research put out a tweet, talking about a negative report on the Adani Group that it had published. The report concluded by saying: “After extensive research, we have taken a short position in Adani Group companies through US-traded bonds and non-Indian-traded derivative instruments."