NEW DELHI: Financial index provider MSCI (Morgan Stanley Capital International) on Thursday said it is reviewing the free-float status of some Adani group securities while Norway’s $1.35-trillion wealth fund announced its exit from Adani firms.
“MSCI has received feedback from a range of market participants concerning the eligibility and free float determination of specific securities associated with the Adani group for the MSCI Global Investable Market Indexes,” a statement issued on Thursday by MSCI read.
The financial index provider defines free float as the proportion of shares outstanding available for purchase in the public equity markets by international investors.According to a senior equity market analyst, this development would affect the weightage of Adani stocks on the MSCI Index and a reduction, especially at this point, may intensify selling pressure as funds benchmarked to MSCI will rejig their portfolios.
Following the MSCI announcement, Adani stocks lost their two-day gain on the stock exchanges and resumed their slide on Thursday. Nine out of the group’s 10 stocks closed in the red with flagship Adani Enterprises plunging 20% during intraday trading.