Adani Power, Adani Enterprises to Adani Energy: Gautam Adani-owned stocks crash up to 8% in trade today; here's why

Adani Group stocks came under heavy selling pressure on Monday, with several group companies witnessing sharp declines amid heightened volatility surrounding the Morgan Stanley Capital International (MSCI) index reshuffle. The weakness in the broader market also added to the negative sentiment, triggering selling across Adani Group stocks.

Adani Enterprises was the worst-performing stock among the major group companies, falling nearly 8% to ₹2,921. Adani Energy Solutions declined 7.4% to ₹1,463, while Adani Green Energy slipped around 7% to ₹1,217.95. Adani Power also came under significant pressure, shedding 6.5% to ₹198.65.

Adani Ports declined 4.11% to ₹1,635, while Adani Total Gas fell 2.5% to ₹620.70. The group's cement stocks were also in the red, with Ambuja Cements declining 2% and ACC falling 1.5%.

The selling came amid a broader decline in Indian equities as investors remained cautious ahead of the implementation of the MSCI index changes and increased volatility linked to the reshuffle.

MSCI Rejig to Trigger Inflows and Outflows

According to a Reuters report, the MSCI reshuffle is expected to result in significant fund movements in several Adani Group companies. Adani Enterprises is likely to receive inflows of around $202 million, while Adani Ports could see inflows of approximately $77 million. Adani Energy Solutions is also expected to attract inflows of around $310 million.

Lenskart Solutions, Laurus Labs, Adani Energy Solutions and Billionbrains Garage Ventures, the parent company of Groww, are set to be added to the MSCI Global Standard Index after market closing hours on August 31, 2026.

The additions and exclusions are expected to result in substantial buying and selling activity as exchange-traded funds and passive funds tracking the MSCI benchmark adjust their portfolios to reflect the revised index composition. Such rebalancing typically leads to fund inflows and outflows in the affected listed companies.

As part of its August 2026 review, MSCI also increased the weightages of several existing stocks. These include Eternal, Adani Enterprises, Adani Ports & SEZ, JSW Energy, Adani Power, Swiggy and GMR Airports.

Meanwhile, the index provider reduced the weightages of Reliance Industries, Jio Financial Services, Indian Hotels, Aditya Birla Capital and Colgate-Palmolive India. Changes in the weightages of stocks already included in the MSCI index can also lead to inflows and outflows as funds rebalance their holdings to replicate the revised benchmark.

Indian Markets Remain Under Pressure

The weakness in Adani Group stocks came against the backdrop of a subdued session for the broader Indian market. The benchmark BSE Sensex and NSE Nifty remained under pressure on Monday, August 31, with the Nifty closing just above the crucial 24,000 support level.

The Nifty fell 95 points to end at 24,080, while the Sensex declined 307 points to close at 76,957.

Domestic markets tracked the weakness in global equities after Warsh reiterated at the Federal Reserve's annual Jackson Hole conference that policymakers remained committed to bringing inflation back to the central bank's 2% target.

His comments pushed bond yields higher and weighed on gold prices. Speaking at the annual Jackson Hole symposium in Wyoming last Friday, Warsh indicated that the Federal Reserve could be required to raise interest rates if inflation fails to move back towards the 2% target.

“The Fed will have work to do if policymakers don't get the confidence they need that inflation is heading down to 2%,” Warsh said on Friday at the Jackson Hole economic symposium, coming closer than he had previously to acknowledging that further rate hikes may be needed.

US bond yields continued to rise following the comments. The US 10-year bond yield climbed to 4.74%, marking its fourth consecutive session of gains. The 30-year bond yield rose to 5.22%, extending its advance for the third straight session.

Geopolitical developments also added to the uncertainty in global markets. US President Donald Trump posted an AI-generated video clip that he said showed Iran's oil hub, Kharg Island, being blown to smithereens. The post came hours after the US and Iran traded attacks for the first time since July.

However, it remained unclear whether Trump's post was intended as a threat towards Kharg Island or whether an attack was actually underway. Meanwhile, crude oil prices rose by more than 2%, adding another layer of concern for investors.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.