Business News/ Companies / News/  These two Adani shares to be dropped from MSCI India index

Two Adani group firms, ie Adani Transmission Ltd and Adani Total Gas Ltd, will be dropped out of the MSCI India index, said MSCI Inc on Thursday. The order will be effective at the close of trading on May 31.

The announcement is another setback for the group which is trying hard to regain market confidence to recover from the rout triggered by the Hindenburg report this year.

The global index took the decision as part of its quarterly comprehensive index review. The MSCI has changed its index's calculation on the number of shares considered freely tradable in the public market for the two companies, reported Bloomberg.

Earlier this month, MSCI informed about implementing weighting cuts for Adani Transmission and Adani Total Gas in its indexes. The reduction was initially announced in February, after the release of the Hindenburg report.

Notably, shares of Adani Group firms were trading in green between 1-5 per cent on Thursday. The market cheer for the company came after the group's flagship company, Adani Enterprises announced plans to raise funds. In the early trade, all 10 Adani group share prices rallied during the morning trade.

On Thursday, Adani Transmission Ltd closed 3.15% higher at 917 apiece on BSE. Adani Total Gas Ltd shares surged by 2.30% and closed at 855.35 per share on BSE.

Hindenburg, in its report, alleged Adani group of brazen stock manipulation over a long period. The billionaire Guatam Adani's group is seeking to raise funds, which is seen as a major test of investor confidence in the group. The report by US-based short seller, Hindenburg, had resulted in the wipeout of around more than $150 billion from Adani group's value at one point. However, the Adani group has denied all the claims.

In recent weeks, the selloff has reduced as Adani's is attempting to regain its position in the market with the help of a series of investor roadshows, early debt repayments, and plans to scale back its pace of spending on new projects.

(With Bloomberg inputs)

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Updated: 12 May 2023, 09:15 AM IST
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