Adani Group Stocks: MSCI removes restrictions in August 2024 index review; resumes stock adjustments

In a positive development for Adani Group stocks, global index provider Morgan Stanley Capital International (MSCI) has announced the removal of the restrictions in the treatment of Adani Group shares. The move comes amid ongoing scrutiny in Adani Group following the Hindenburg Research allegations.

In its August 2024 Index Review, MSCI said it will resume normal operations and implementation of the index review, including changes in the Number of Shares (NOS), Foreign Inclusion Factor (FIF) and Domestic Inclusion Factor (DIF) of Adani Group and associated securities.

MSCI will also resume the regular implementation of corporate events for these securities effective September 2, 2024, it said in a release.

These changes will take effect at the close of August 30 and will be fully implemented by September 2.

However, MSCI said it will continue to closely monitor the Adani Group and associated securities, particularly concerning their free float status.

The index provider stated that it would issue further communication if necessary, indicating that the group remains under observation.

In February 2023, MSCI had suspended certain adjustments to Adani Group securities amid concerns about the free float status of these stocks and deferred the implementation of ‘non-neutral corporate events’.

MSCI’s latest announcement is for its Global Standard Index. The Adani Group stocks that are part of the MSCI Global Standard Index are Adani Enterprises, Adani Ports & SEZ, Adani Green Energy, Adani Power, and Ambuja Cements.

Additionally, MSCI August review also saw reduction of weightage of Adani Enterprises and Ambuja Cements in its Standard Index.

MSCI August Review

MSCI also announced the inclusion of seven stocks - RVNL, Vodafone Idea, Dixon Technologies (India), Oil India, Oracle Financial, Prestige Estates and Zydus Lifesciences - in the MSCI India Index.

HDFC Bank shares will see an increase in its weightage in the MSCI indices but that will take place in two tranches.

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