Stocks linked to the Adani Group have escaped removal from MSCI Inc. indices even as the Indian conglomerate continues to decline and has wiped out almost half of its market value in just over two weeks, noted a report by Business Standard.
However, it is important to note that it is still unclear whether the index provider has adjusted the weightings of any of the group’s stocks in its equity gauges in its latest review, stated the report. MSCI said Wednesday it was reviewing the amount of shares linked to the group that was freely tradable in public markets.
BS informed that the review has directed market attention back to a key allegation by Hindenburg Research: that offshore shell companies and funds tied to the Adani Group comprise many of the largest “public,” or non-insider, holders of Adani shares.
The ramifications of the selloff are spreading far and wide as concerns grow about the exposure that financial institutions and investors have to Adani, it highlighted. BS also mentioned that the tumult has disrupted parliament and India’s main opposition party is ramping up pressure on Prime Minister Narendra Modi over his silence on the issue.
All Adani group entities, except for Adani Wilmar Ltd. and New Delhi Television Ltd., are part of MSCI’s key gauges for Asia Pacific, emerging markets and India, according to data compiled by Bloomberg.