Adani group stocks floundered in a knee-jerk reaction losing up to $13 billion of combined market value on Monday but recovered a significant portion of their losses as investors assessed the ramifications of the latest allegations by Hindenburg Research against the conglomerate and Madhabi Puri Buch, chairperson, Securities and Exchange Board of India (Sebi).

The overall stock markets recovered from the hammering of the Adani stocks, with the benchmarks reporting small losses.

At close, the combined market capitalisation of the Adani group firms stood at ₹17.02 lakh crore, which represented a drop of ₹21,678.40 crore or almost $2.58 billion from Friday’s market cap of ₹17.24 lakh crore.

Stock market circles had anticipated the negative reaction while pointing out that since most of the charges were already known to investors, the losses will be limited. However, any fresh developments will impact the group stocks.

The shares of eight of the 10 group companies ended in the red after coming under intense selling pressure during early morning trades.

However, the pressure ebbed as trading progressed and the shares managed to claw back most of their losses.

During early trade, the shares of Adani Energy Solutions tanked 17 per cent, while Adani Total Gas plummeted 13.39 per cent.

Similarly, NDTV lost 11 per cent and Adani Power fell 10.94 per cent.

Group flagship Adani Enterprises crashed 5.43 per cent, while Adani Ports, a Sensex stock, fell 4.95 per cent.

At the close of trade, the Adani Wilmar stock ended lower 4.14 per cent, Adani Total Gas, 4.03 per cent, whereas Adani Energy Solutions dropped 3.70 per cent.

Among others, NDTV fell 3.08 per cent, Adani Ports dipped 2.02 per cent, Adani Enterprises by 1.09 per cent, while ACC was down 1.55 per cent and Adani Power, 0.65 per cent on the BSE.

However, two of the group firms bounced back into the green, with Ambuja Cements climbing 0.55 per cent and Adani Green Energy rising 1.12 per cent.

Meanwhile, the benchmark Sensex closed with minor losses in a highly volatile trade due to buying in some of the private sector banks.

The 30-share gauge closed lower 56.99 points or 0.07 per cent at 79648.92 with 18 of its constituents ending with losses.

During intra-day trades, it crashed 479.78 points to a low of 79226.13 as sentiment was impacted by the Hindenburg accusations.

On the NSE, the Nifty dipped 20.50 points to 24347.

``The Indian market concluded relatively flat, with its initial path being eclipsed by the continuation of the Adani-Hindenburg-Sebi saga. However, the market tried to brush away these noises, taking positive cues from global markets. Moreover, the domestic market is anticipating ease in CPI inflation, which is going to be further supported by a good monsoon. Yet, the upside risk remains, given firm oil prices and volatility in food inflation,” Vinod Nair, head of research, Geojit Financial Services, said.

Support to Buch

Industry bodies representing the real estate investments trusts (REITs) and alternate capital came in support of Sebi chief Madhabi Puri Buch on Monday.

Indian REITs Association (IRA) said that claims made by the US-based short-seller suggesting that the REIT framework made by markets regulator Sebi serves the interests of a select few are “baseless and misleading”.

In fact, the association has commended Sebi and its leadership for crafting a “rigorous regulatory environment” that includes comprehensive periodic reporting requirements and strict governance standards.

The Indian Venture and Alternate Capital Association said it stands firmly behind Buch in the “challenging times” and added that Sebi has shown an “unwavering commitment to market integrity, regulatory governance, and investor protection”.