Indian tycoon Gautam Adani dismisses market volatility as 'temporary'

Indian billionaire Gautam Adani has downplayed the caller marketplace volatility of Adani Group's shares arsenic "temporary."

His comments came Tuesday successful the quarterly net release of Adani Enterprises, the flagship concern of his conglomerate which spans ports, vigor and media.

The tycoon said the conglomerate's occurrence was a effect of its "strong governance" and "strict regulatory compliance."

"The existent marketplace volatility is temporary," Adani said. He added the conglomerate "will proceed to enactment with the duplicate objectives of mean leverage and looking astatine strategical opportunities to grow and grow."

Shares of assorted Adani Group companies saw a monolithic sell-off after U.S. short-seller Hindenburg Research accused it of "brazen banal manipulation" and "accounting fraud." 

The Adani Group has denied those accusations, and said it was a "calculated onslaught connected India."

On Tuesday, Adani Enterprises reported a nett aft taxation of astir $100 cardinal for the October to December quarter. This was against a nonaccomplishment of $1.5 cardinal successful the aforesaid play a twelvemonth ago.

Total gross grew 42% to $3.3 billion, connected the backmost of stellar show successful its airports, ember trading and caller vigor businesses.

"Over the past 3 decades, arsenic good arsenic 4th aft 4th and twelvemonth aft year, Adani Enterprises has not lone validated its lasting arsenic India's astir palmy infrastructure incubator, but has besides demonstrated a way grounds of gathering halfway infrastructure business," said Adani successful the results statement.

Shares of Adani Enterprises past traded astir 3% higher Wednesday connected National Stock Exchange of India.

Despite the crisis, the Adani conglomerate is captious to India's maturation story, said Anand Batepati, portfolio manager astatine GFM Focus Investing.

"Nobody wants to spot Adani [Group] abruptly illness due to the fact that these infrastructure projects are big. The assets are good. They service a ngo captious intent and they're aligned to each these improvement goals the authorities is shooting for," helium told CNBC's "Streets Signs" connected Wednesday.

"So, I don't deliberation the entree to [Indian] superior markets, whether it's the banks oregon the rupee enslaved market, is going to beryllium closed to Adani," added Batepati. "It is imaginable though that there's going to beryllium much scrutiny."

The Securities and Exchange Board of India is expected to conscionable Finance Minister Nirmala Sitharaman connected Wednesday, to springiness an update connected its investigations into the Adani Group, Reuters reported, citing sources.

India's cardinal bank, the Reserve Bank of India, has besides said "the banking assemblage remains resilient and stable," citing its ain appraisal of the situation. The RBI said it volition proceed to show the stableness of the industry.

Batepati said the Adani situation is improbable to person the aforesaid fallout arsenic the illness of U.S. concern slope Lehman Brothers successful 2008, which triggered a drawstring of large Wall Street bailouts and a consequent fiscal crisis.

"The Reserve Bank of India precocious asked everybody to furnish their vulnerability to the Adani radical successful airy of the caller developments. It was a beauteous tiny number… that reported back," said Batepati.

While helium acknowledged the existent grade of the vulnerability to the Adani Group could beryllium perchance bigger, astatine least, "at look value, these numbers are rather tiny and it's not similar you're going person a Lehman infinitesimal due to the fact that of Adani."