NEW DELHI: Global index provider MSCI has lowered the weightages of four Adani Group companies after reviewing the free float status of some the Group’s securities over feedbacks of market participants following the allegations of stock price manipulation by US-based short seller Hindenburg Research.
MSCI, however, kept the free float status of four Adani firms unchanged. Adani Group faced another setback after Moody’s Investor Service on Friday revised downwards the rating outlook on four Adani companies to negative from stable.
Adani group companies whose weightages have been reduced in the MSCI Indices are Adani Enterprises, Adani Total Gas, Adani Transmission and ACC. MSCI has maintained a status quo on Adani Ports & SEZ, Ambuja Cements, Adani Green Energy and Adani Power. Of the total 10 listed Adani Cos, except for NDTV and Adani Wilmer, the remaining 8 are part of the MSCI Indices.
The changes, which would be effective on February 28, are expected to intensify selling pressure in Adani group stocks which already are under severe pressure. Following the January 24 report, Adani group has lost over $100 billion in market capitalization.“MSCI has changed the foreign inclusion factor (FIF) in a few names and the major downward revision has been seen in Adani Transmission, Adani Total Gas and Adani Enterprises. This will lead to meaningful outflows in these names,” said a note by Nuvama Alternative & Quantitative Research.
Nuvama projects $161 million outflow in Adani Enterprises, $145 million outflow in Adani Transmission and $110 million outflow in Adani Total Gas after the revision in weightage. Shares of Adani Enterprises fell about 10% in the early trading hours of Friday but recouped some of their losses to settle 4% lower at Rs 1,847 on the BSE. Adani Total Gas and Adani Transmission hit their lower circuit of 5%, while ACC shed 2%. Adani Green Energy and Adani Power also hit their lower price band of 5%, while Adani Ports and Ambuja Cements ended with marginal gains.