MSCI Index rejig: Adani Transmission, Adani Total shares fall 5% each, Indus Towers down over 2% on index exclusion
- Adani Total Gas shares were locked at 5% lower circuit at ₹812.60, while Adani Transmission also fell 5% to an intraday low of ₹871.15. Indus Towers also declined more than 2%.
Shares of Adani Transmission, Adani Total Gas and Indus Towers fell between 2-5% Friday after MSCI announced that these stocks will be dropped out of the MSCI India Standard Index.
Adani Total Gas shares were locked at 5% lower circuit at ₹812.60, while Adani Transmission also fell 5% to an intraday low of ₹871.15. Indus Towers also declined more than 2%.
Read here: MSCI Index Rejig: HAL, Max Health, Sona BLW included; Indus Towers, two Adani Group stocks excluded
Morgan Stanley Capital International (MSCI) 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. The order will be effective at the close of trading on May 31.
The exclusion from the index would result in an outflow of $201 million for Adani Transmission, $186 million for Adani Total Gas and $84 million from Indus Towers, as per Nuvama Alternative & Quantitative Research.
Adani Group stocks have undergone a heavy beating by investors since the beginning of this year when US short-seller Hindenburg Research accused the group of “brazen stock manipulation and accounting fraud scheme over the course of decades”.
Adani group shares came under pressure on Friday ahead of the Supreme Court hearing on the Adani-Hindenburg case after the six-member panel constituted by the apex court in March submitted its report.
Shares of Adani Transmission had plummeted 66%, while Adani Total Gas has plunged more than 78% so far this year.
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