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A couple of days ago Hindenberg broke a story indicating they felt Adani was engaging in significant fraudulent activity, https://news.ycombinator.com/item?id=3

A couple of days ago Hindenberg broke a story indicating they felt Adani was engaging in significant fraudulent activity, https://news.ycombinator.com/item?id=34513802 https://news.ycombinator.com/item?id=34513802 The market appears to be agreeing with their analysis. In the past day Adani is down nearly 20% against a >3T market cap. It will be very interesting to see how this affects overall confidence in India's markets going forward.

hitekker 4y ago
Interesting that the top comment of the thread you posted attempts to minimize Adani's culpability. It reminds me when the FTX story broke Coindesk and was posted to HN. The top commenter there was trying to convince everyone there's nothing to see and the concerns were overly dramatic.
- alephnerd 4y ago
  I wouldn't call that minimizing. That's just how the nexus between politics and industry works in India. The kind of business practices Adani did is very common in India, and they 100% will get bailed out by the LIC or other PSUs, if not for bhaichara but for the fact that the optics of "Firangi" bankers attacking a Desi company and "insulting" Indian economic sovereignty are bad. Throw in some references to the East India Company, the Brits, and American sanctions against India in the 70s and 90s and that makes it easy to spin this story into one of economic nationalism. Welcome to the developing world. edit: Also, this sadly is not the first nor the last instance of this nexus arising in Indian politics. Not to minimize the Adani scandal, but you a similar issue arise in the Manmohan Singh govt (the rise and fall of DLF), the Vajpayee govt (IAI/Rafale's Barak Scandal), and so on and so on. That said, usually, when news like this comes up in India, it tends to herald the looming end of a political era.
- potamic 4y ago
  This is something I see so often it boggles the mind. Wealthy, powerful people tend to have fans. Any time there's an accusation against them, there's a bastion of common people who come to their defense, despite being potentially affected by the accusations. If anything, the common man should be putting wealthy, powerful people under even bigger scanner and scrutinising their every move, because one bad move can have large implications for them.

hitekker 4y ago

Interesting that the top comment of the thread you posted attempts to minimize Adani's culpability. It reminds me when the FTX story broke Coindesk and was posted to HN. The top commenter there was trying to convince everyone there's nothing to see and the concerns were overly dramatic.

alephnerd 4y ago
I wouldn't call that minimizing. That's just how the nexus between politics and industry works in India. The kind of business practices Adani did is very common in India, and they 100% will get bailed out by the LIC or other PSUs, if not for bhaichara but for the fact that the optics of "Firangi" bankers attacking a Desi company and "insulting" Indian economic sovereignty are bad. Throw in some references to the East India Company, the Brits, and American sanctions against India in the 70s and 90s and that makes it easy to spin this story into one of economic nationalism. Welcome to the developing world. edit: Also, this sadly is not the first nor the last instance of this nexus arising in Indian politics. Not to minimize the Adani scandal, but you a similar issue arise in the Manmohan Singh govt (the rise and fall of DLF), the Vajpayee govt (IAI/Rafale's Barak Scandal), and so on and so on. That said, usually, when news like this comes up in India, it tends to herald the looming end of a political era.
potamic 4y ago
This is something I see so often it boggles the mind. Wealthy, powerful people tend to have fans. Any time there's an accusation against them, there's a bastion of common people who come to their defense, despite being potentially affected by the accusations. If anything, the common man should be putting wealthy, powerful people under even bigger scanner and scrutinising their every move, because one bad move can have large implications for them.