Following the statement by MSCI that they would be decreasing the proportion of freely tradable shares in their calculation, the stock prices of firms within the Adani Group fell noticeably. Analysts’ expectations of a decrease in weightages as a result of this event have increased market uncertainty.
Adani Transmission lost 5%, Adani Power fell 5%, Adani Power fell 8%, Adani Enterprises fell 8%, and Adani Wilmar sank 3%. Adani Green Energy, ACC, NDTV, and Ambuja Cement experienced respective declines of 3%, 2%, 2.6%, and 0.3%. Adani Ports, on the other hand, saw a 0.5% increase.
Adani Enterprises Ltd., Adani Transmission Ltd., Adani Total Gas Ltd., and ACC Ltd. will all see changes to their free floats, according to MSCI. The 28th of February will see the implementation of these adjustments.
Adani Enterprises’ weight in the MSCI Global Standard Index would drop by 30 basis points to 0.5%, according to a letter from Nuvama Wealth Management. The statement also warned that the other three stocks’ weightings would also decrease, which may lead to a total outflow of almost $500 million from these equities.
The stocks of Adani Group firms have fallen precipitously since January 24 as a result of claims made by the US-based research company Hindenburg Research. The Adani Group has been accused of “stock manipulation and accounting fraud,” which has caused a dramatic decline in the market capitalization of the conglomerate and a loss of approximately $117 billion in value. The claims have significantly increased market apprehension and decreased the performance of the equities.