Why is Adani Stock falling and hitting lower circuit, is it because of Adani Scam reported by Hindenburg Research?

The Indian finance minister has stated that the cancellation of the Adani FPO will have no lasting impact on the health of the Indian economy, citing the $8 billion that has flowed into the nation over the past two days.

On Saturday, Finance Minister Nirmala Sitharaman stated that regulators would do their job in response to queries about whether the ongoing Adani Group issue may escalate into a big financial crisis and what efforts the government was undertaking on this front.

In response to a question about the troubled group, she stated, "So the authorities will do their thing." The authorities who enforce laws are separate from the government. The onus is put on them to act reasonably. She further noted that the SEBI has the resources necessary to maintain the pristine state of the markets under its purview.
When asked if Adani Enterprises' decision to pull their Follow-on Public Offer (FPO) will hurt India's economy or reputation, the FM stated that the $8 billion that had flowed into the country over the previous two days was evidence the economy was still strong.

Nothing at all changes regarding the underlying structure of our economy or how we are seen internationally. She also noted the cyclical nature of FPO arrivals and departures. Hence, no sign of worry for the markets.

Adani-Hindenburg battle in Supreme Court!

A petition has been submitted to the Supreme Court, requesting an investigation into Nathan Anderson and his associates for their involvement in the Adani v. Hindenburg case. The US-based firm Hindenburg Research practices activist short selling, which involves borrowing and selling stocks with the aim of buying them back at a lower price. This results in big profits for short-sellers if prices drop as expected.

The petition argues that following Hindenburg Research's report on Indian billionaire Gautam Adani and his company, short selling should be considered a criminal offense and Anderson and his colleagues should be arrested. Advocate ML Sharma filed the petition, demanding a probe into allegations that Anderson and his colleagues in the US and India exploited unsuspecting investors and manipulated the stock price of the Adani Group.

Hindenburg Research has accused the Adani Group of accounting fraud and "brazen stock manipulation," which the company denies. The practice of short selling involves borrowing stocks with the view of buying back at a lower price, which is what activist short sellers like Hindenburg aim to do. If prices fall as predicted, short sellers can make substantial profits.