Shares of a large Indian company experienced a significant decline on Friday following the release of a report by Hindenburg Research, which revealed discrepancies in the company’s financials. At the same time, S&P Global downgraded Hungary’s rating due to extreme external pressures and high inflation.
Adani Shares Plunge from Hindenburg Report
The Indian multinational conglomerate, Adani, experienced a sharp decline in its shares on Friday following the release of a report by Hindenburg Research. The report, which highlighted discrepancies in the company’s debt levels and use of tax havens, caused Adani’s shares to drop by nearly 20% within 24 hours.
This report, in turn, led to a massive loss of $48 billion for the entire Adani Group of companies. Adani, however, has not taken this news lying down and has announced that it is considering taking legal action against the report.
The company is said to be preparing to weather the storm and wait for the situation to improve. However, the report affected Adani and had a ripple effect on the Indian stock market, causing a decline in the main Nifty index by 1.5% and the Nifty Bank index by 3%.
The Adani Group was formed in 1988 by Gautam Adani, who started a commodity trading business. Today, the group has grown to become one of India’s leading and most diversified conglomerates, with a presence in various sectors such as agribusiness, energy, resources, logistics, and infrastructure.
The group is known for its investments in the ports and logistics sector, with the company owning and operating India’s largest private port, Mundra Port.
They have also made significant investments in the renewable energy sector, with plans to develop one of the leading solar power plants in the world. The group also operates Adani Power, one of India’s largest private power producers, and Adani Green Energy, one of India’s leading renewable energy companies.
S&P Group Downgrades Hungary Rating
On Friday, S&P Global downgraded Hungary’s credit rating, citing high inflation and surging energy bills as the main reasons for the downgrade. The rating agency stated that these factors put significant pressure on the Hungarian government.
In addition, with interest rates across the European Union remaining at all-time highs, the country’s financial situation is becoming increasingly precarious. As a result, s&P Global’s downgrade of Hungary’s credit rating is considered negative, indicating that the country’s financial situation is likely to worsen soon.
In addition, the rating agency expects Hungary to breach its budget gap in the next few years, which could further exacerbate the country’s economic troubles.
The downgrade of Hungary’s credit rating is likely to hurt the country’s economy, making it more expensive for the government to borrow cash and affecting its ability to attract foreign investment.