MSCI cuts weighting of 4 Adani group stocks, triggers fresh sell-off

Index provider keeps status quo on four other firms; changes to come into effect on Feb 28

MSCI has revised lower the weighting of four Adani Group companies after re-designating some of the free float, following feedback from market participants. Meanwhile, the global index provider has kept the free float for four other companies of the group unchanged.

The changes — to come into effect from February 28 — are expected to lead to selling pressure in Adani Group stocks, which are already reeling under pressure, following the allegations of fraud and stock price manipulation by US-based Hindenburg Research on January 24. Among the companies whose weighting have been cut include flagship Adani Enterprises (AEL), Adani Total Gas