The Collateral Damage of the Hindenburg’s Attack
Image Source: Times Now

The report which accused Adani group of stock manipulation, not only just brings misery for India’s business tycoon but also for all those people who are either fully dependent on the stock market for wealth or test their fortune in the dalal street.

The Hindenburg report has completely tarnished the image of India’s richest person. Adani, who was living on the seventh sky for years, has tasted the floor for the first time. It is a very famous saying that, “a person who carries others on his shoulders to the top also makes them fall from high canyon.” This is the same case for Adani here. 

Many people and other firms had/have huge investments in the Adani Group, after the shares of Adani started to fall after Hindenburg’s report, shares of several other firms also started to tremble. The biggest loss was received by LIC, as its shares plunged to record low. Many people who had shares of Adani and LIC are now out of sleep after losing a huge amount of wealth. 

The opposition is also questioning the government as to why LIC (a government subsidiary) was too dependent on a private group. The series of losses hasn’t stopped here, it is being predicted that the shares of Adani Group, LIC and several other firms will plunge even more.

The Total Massacre

The total loss suffered by the Adani Group is over 23 thousand crores while LIC has also lost more than 20 thousand crores since Friday, which should rightfully be called as the “Black Friday” for the Indian Stock Market. The huge drain in wealth of major industries has also questioned the stability of the Indian Stock Exchange globally. 

Damage to the Core! Will Indian banks sink?

The scenarios like this, result in people losing faith in the banks and even more on the stock market, the people who rarely opt to take risks will back down even more. This is not a good thing for any market. 

Talking about threats to the banks, this is not a new thing experienced by the Indian economy, almost every scandal involving the stock market leads to the downfall of banks also. Congress MP Randeep Sujrewala said that there is a loan of whopping 81 thousand crores of banks on Adani, which is resulting in the fall of market capitalisation of government banks. 

If the situation of downfall of the Adani group continues, then how will he repay his loans, in case he becomes bankrupt then it will become a very tragic moment for the Indian market. 

As always, it will be the common man who will suffer the most, his money will get stuck in the banks, his dreams will get sold and the riches will always sit with their silver spoons.

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