The BSE Sensex initially experienced a sharp drop but later closed with a minor decline of 56.99 points, or 0.07%, at 79,648.92 points.

On Monday, local stock markets showed slight declines in a volatile trading session. Investors remained cautious after a report from the U.S. research and investment firm, Hindenburg Research, about SEBI Chief Madhabi Puri Buch and her husband’s undisclosed foreign fund investments, raising concerns in the market.

The BSE Sensex, which is based on 30 shares, initially fell sharply. However, it later recovered and closed with a minor loss of 56.99 points, or 0.07%, at 79,648.92 points. In the morning trade, the Sensex had dropped by 479.78 points but then surged by 400.27 points before settling lower by the end of the session.

Meanwhile, the NSE Nifty closed with a 20.50-point, or 0.08%, drop at 24,347 points. During the session, it fell to a low of 24,212.10 points and reached a high of 24,472.80 points.

Vinod Nair, Head of Research at Geojit Financial Services, said, “The Indian market closed steady… Initially, the market was impacted by the Hindenburg report… However, the market shrugged it off and took cues from the positive global trend.”

Among the 30 companies in the Sensex, NTPC, PowerGrid, State Bank of India, Nestlé, Mahindra & Mahindra, Reliance Industries, and Tata Consultancy Services were the biggest losers. On the other hand, Axis Bank, JSW Steel, Tata Motors, HDFC Bank, and Kotak Mahindra Bank were the top gainers.

On Saturday, Hindenburg Research accused SEBI Chairperson Madhabi Puri Buch and her husband of wrongdoing. Buch and her husband denied the allegations, calling them baseless. They stated that Hindenburg was attacking the credibility of the capital market regulator and trying to tarnish the Chairperson’s character.

The Adani Group also responded to Hindenburg’s latest accusations, calling them malicious and based on selective public information. The group clarified on Sunday that it has no commercial relationship with SEBI’s Chairperson or her husband.

In other Asian markets, South Korea’s KOSPI and Hong Kong’s Hang Seng closed higher, while China’s Shanghai Composite ended lower. Japan’s Tokyo market was closed for a holiday. European markets were trading higher, while U.S. markets had ended Friday on a positive note.

According to stock market data, foreign institutional investors were net buyers on Friday, purchasing shares worth ₹406.72 crores.

Global oil benchmark Brent Crude rose 0.83% to $80.32 per barrel.

On Friday, the BSE Sensex had surged by 819.69 points, and the NSE Nifty had gained 250.50 points.