Most of Adani Group of companies stocks were trading in red zone on Thursday's early trade following index provider MSCI Inc statements, and Adani Power Ltd's weak Q3FY23 earnings. Adani Transmission Ltd, Adani Total Gas Ltd, and Adani Power Ltd hit 5% lower circuit.
Following criticism from investors on the inclusion of the controversial Indian conglomerate's equities in its indexes, MSCI Inc has been reevaluating the number of Adani Group-related shares that are freely traded on stock market.
“MSCI has determined that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float pursuant to our methodology,” the index provider said on Wednesday. “This determination has triggered a free float review of the Adani Group securities.”
When it releases its February index review on Thursday, MSCI said it will make any necessary announcements and revisions that have an impact on how the so-called free float and market capitalization of the Adani group equities are calculated.
Further, Adani Power Ltd on Wednesday reported 96 per cent decline in consolidated net profit at ₹8.77 crore for December quarter 2022-23 mainly on the back of higher expenses, which weighed on the stocks sentiment.
After being the top gainers of Nifty on Wednesday's trade shares of Adani Enterprises Ltd slumped 15%, while Adani Total Gas Ltd, Adani Green Energy Ltd, Adani Transmission Ltd, and Adani Power Ltd fell 5% each on Thursday's early trade.
Adani Ports & Special Economic Zone Ltd slipped over 7%, after gaining nearly 30% in the last four trading sessions. Despite, a positive start for Adani Wilmar Ltd on Thursday, the shares slipped in to the red zone and was down over 2%.
Adani Wilmar on Wednesday reported a 15 per cent increase in its consolidated profit to ₹246.11 crore for the third quarter ended December 2022, on higher revenue.
