Most Adani group stocks bleed as MSCI reduces Adani Ent, Trans, Total Gas, ACC weight in indices

A majority of Adani stocks traded in the red zone on Friday, after index provider MSCI said it will lower the weightage of four group companies, including its flagship firm Adani Enterprises, in its gauges. The move by MSCI comes after a reassessment of the number of the group's shares that are freely traded, and changes will take effect from the closing on February 28. 

MSCI defines the free float of a security as the proportion of shares outstanding that is considered available for purchase in the public equity markets by international investors.

Around noon, six Adani group stocks traded in the red, with four — Adani Ports, Adani Transmission, Adani Green and Adani Total Gas — locked in the lower five per cent circuit amid volatile trade on Dalal Street: 

The recent wild swings in the Adani group stocks come in the wake of a January 24 report by US-based Hindenburg Research that accused the Indian conglomerate of stock manipulation and improper use of offshore tax havens. The Adani group has denied any wrongdoing.

Barring Adani Enterprises, Adani Total, Adani Transmission and ACC, the free float measure for four other Adani group companies remain the same, HDFC Securities Head of Retail Research Deepak Jasani pointed out. 

"The cuts will result in smaller weightings for those stocks in MSCI's closely watched indices, triggering outflows as investors who track the benchmarks reduce their shareholdings," Jasani said.

Earlier, MSCI said it had 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 (GIMI).