Shares of Adani Total Gas and Adani Transmission fell in the morning trade on Friday after MSCI announced that the two companies will move out of the MSCI India Index with effect from May 31.
The stock of Adani Total Gas tumbled 5% to ₹812.60 — its lower circuit limit — on the BSE.
Shares of Adani Transmission declined 5% to hit its lowest permissible limit for trading for the day at ₹871.15.
There are three additions and three deletions announced in the MSCI India Index, which will take place as of the close of May 31, according to an update by index compiler MSCI.
Indus Towers will also move out of the index. Shares of Indus Towers closed 2.15% lower at ₹148.20 on the BSE.
The three firms to be added are Hindustan Aeronautics, Max Healthcare Institute and Sona BLW Precision, according to the May 2023 index review announced on Thursday.
“MSCI has announced the addition of Max Healthcare, Hindustan Aeronautics and Sona BLW Precision to its India Index, as part of the May 2023 rejig. On the other hand, Adani Transmission, Adani Total Gas and Indus Towers have been deleted from the MSCI India Index,” said Deepak Jasani, Head of Retail Research, at HDFC Securities.
U.S. short seller Hindenburg Research in its January 24 report levelled allegations of fraud and stock manipulation against the Adani group.
Adani group has repeatedly denied all allegations.
MSCI Global Standard Index is widely used by global fund houses for benchmarking global equities portfolios.
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