MSCI to lower weighting of 4 Adani corporations in wake of Hindenburg report

MSCI to lower weighting of 4 Adani corporations in wake of Hindenburg report


Individuals walk earlier a monitor displaying information showcasing on Adani Team inside of the BSE building in Mumbai, India, on Thursday, Feb. 2, 2023.

Bloomberg | Bloomberg | Getty Visuals

Index provider MSCI said it will reduce the weightings of 4 Adani Group providers, which include flagship agency Adani Enterprises, in its indexes following reassessing the selection of shares that are freely traded.

The move will come in the wake of a Jan. 24 report by U.S. short vendor Hindenburg Study that has accused the Indian conglomerate of improper use of offshore tax havens and stock manipulation. The team has denied any wrongdoing.

The Hindenburg report has plunged the team, led by billionaire Gautam Adani, into crisis, wiping some $110 billion off the price of the group’s key seven shown firms.

In addition to Adani Enterprises — the group’s coal-miner-cum-incubator for new initiatives, MSCI also options to slash the weightings for Adani Overall Gas — a enterprise with France’s TotalEnergies and Adani Transmission, a electric power transmission organization.

Watch CNBC's full interview with NYU's 'Dean of Valuation' Aswath Damodaran on Adani and more

It will also cut down the weighting of ACC, a important Indian cement corporation the Adani Group obtained from Holcim final year and which is not 1 of the group’s major 7 outlined corporations.

Adani Team did not straight away respond to a request for remark from Reuters on Friday.

The four providers had a put together .4% weighting in the MSCI rising marketplaces index as of Jan. 30. The adjustments arrive into outcome on March 1.

“The reduce free float will have to have passive buyers to promote stock to lessen their tracking mistake with the index,” said Brian Freitas, a Periscope Analytics analyst who publishes on Smartkarma.

“There could be advertising from energetic investors ahead of that as they try to provide ahead of the passives.”



Resource

Pentagon to become largest shareholder in rare earth miner MP Materials; shares surge 50%
World

Pentagon to become largest shareholder in rare earth miner MP Materials; shares surge 50%

The Defense Department will become the largest shareholder in rare earth miner MP Materials after agreeing to buy $400 million of its preferred stock, the company said Thursday. MP Materials owns the only operational rare earth mine in the U.S. at Mountain Pass, California, about 60 miles outside Las Vegas. Proceeds from the Pentagon investment […]

Read More
The three energy topics on everyone’s lips at the OPEC seminar
World

The three energy topics on everyone’s lips at the OPEC seminar

The blue logo of the Organization of the Petroleum Exporting Countries (OPEC) is displayed on the facade of its headquarters building in Vienna, Austria, on June 9, 2025. Nurphoto | Nurphoto | Getty Images OPEC says more than 1,000 ministers, CEOs, policymakers, analysts and journalists were invited to its biennial seminar to discuss key trends […]

Read More
Mining firms power UK stocks to record high after 50% U.S. copper tariff confirmed
World

Mining firms power UK stocks to record high after 50% U.S. copper tariff confirmed

The smelting area, where the copper is smelted and then placed in molds and cooled, at the Codelco El Teniente processing facility in Machali, Chile, on Wednesday, April 2, 2025. Bloomberg | Bloomberg | Getty Images London-listed mining firms bounced on Thursday, shaking off recent losses to drive the U.K.’s FTSE 100 index to a […]

Read More