Adani Enterprises fell 10 per cent to Rs 1,734.60 per share on the BSE. (file)
New Delhi:
Most of the Adani group companies fell in morning trade on Friday with flagship Adani Enterprises falling up to 10 per cent after index provider MSCI decided to reduce the weighting of four firms in its indices following a review.
Amid volatile trading in the market, seven Adani group companies were in the negative territory while three others were in the green.
Adani Enterprises fell 10 per cent to Rs 1,734.60 per share, hitting its lower price band on the BSE and the company’s market valuation declined to Rs 2.14 lakh crore.
In the morning session, Adani Power fell 5 per cent to Rs 164.30 and touched its lower price band. Similarly, Adani Transmission closed at Rs 1,186.15, Adani Green Energy at Rs 723.90 and Adani Total Gas at Rs 1,258.25. All these stocks have declined by 5 per cent.
NDTV scrip closed at Rs 211, down 2.56 per cent, and ACC by 0.84 per cent at Rs 1,900.35.
However, three other Adani group companies were doing business in the green zone. Adani Ports and Special Economic Zone rose by 1.98 per cent to Rs 593.60, Ambuja Cements by 1.09 per cent to Rs 361.90 and Adani Wilmar by 1.10 per cent to Rs 445.15.
Deepak Jasani, head of retail research at HDFC Securities, said MSCI Inc has cut its stipulated free float for four Adani group companies — Adani Enterprises, Adani Total Gas, Adani Transmission and ACC.
Free float measures remained the same for the four other companies in the group. The cut, which will come into effect at the end of February, will result in smaller weightings for stocks in MSCI’s closely watched indices as those investors trigger outflows that track benchmarks reduce their shareholding,” he said.
Citing brokerage reports, Jasani said Adani Transmission, Adani Total Gas and Adani Enterprises could see the maximum outflows given the reduction in weightage.
Earlier, MSCI Inc said it has received feedback from several market participants regarding the eligibility and free float determination of specific securities belonging to the Adani Group for the MSCI Global Investable Market Index (GIMI).
MSCI defines a security’s free float as the proportion of outstanding shares considered available for purchase by international investors on public equity markets.
In the morning session, the 30-share BSE Sensex was trading 139.83 points or 0.23 per cent lower at 60,666.39.
Shares of the group have lost about Rs 9.4 lakh crore or about 49 per cent of their combined market capitalization since January 24, when US-based short-seller Hindenburg Research came out with its adverse report about the Adani group.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group company.)
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