Madhu Kela’s advice for stock market investors on ‘conspiracy’ Hindenburg report

Market veteran Madhusudhan Kela criticised US short seller Hindenburg’s allegations against Sebi chief Madhabi Puri Buch and her husband saying that the report is part of a broader ‘conspiracy’ aimed at undermining India’s reputation. Reflecting on the January 2023 report which caused a significant sell-off in Adani Group stocks and the stock market, Madhu Kela said that he is confident that this time the impact will be minimal.
He told CNBC-TV18, “I am very clear that investors do not need to worry. This is not going to destabilise India or the markets. Something else might happen tomorrow that moves the market, but this event? No, I wouldn’t be nervous at all.”

The Hindenburg report alleged that Sebi chief Madhabi Puri Buch and her husband Dhaval Buch held interests in offshore funds based in Bermuda and Mauritius which were used by Gautam Adani’s brother Vinod Adani to trade shares in Adani Group.
Madhu Kela said that the report is filled with ‘conspiracy’ claims and failed to present any clear allegations. He said, “If you’re a private individual who invested in a fund based on a friend’s recommendation, and that fund was redeemed when the friend left their job—what’s wrong with that? All the money made is legal, with a 30-year career behind it.”
Assuaging investors Madhu Kela said, “First of all, the markets have been incredibly resilient, even surprising optimists like me. We’ve seen elections, budgets, changes in capital gains, and foreign currency issues, yet the interest in equities remains strong. Equities are now a genuine asset class, not just a speculative play. The fact that ₹23,000 crore is coming into mutual funds through SIPs gives me a lot of confidence.”