Adani Rout Hits $120 Billion as MSCI Move Raises Outflow Concern
- MSCI reduces free float determination for four Adani companies
- Changes to bring down weightings for the stocks in MSCI gauges
A news broadcast on the Adani Group outside the Bombay Stock Exchange (BSE) building in Mumbai, on Feb. 9.
Photographer: Indranil Aditya/BloombergAdani Group stocks capped another week of losses as a review by MSCI Inc. spurred concern about passive outflows from shares already reeling from the rout triggered by US short seller Hindenburg Research’s scathing report.
Eight of the conglomerate’s 10 stocks fell in Mumbai on Friday after the global index provider cut the amount of shares it considers freely tradable for four of the companies, a move that will cause their weightings in its indexes to drop. Meanwhile, Moody’s Investors Service changed its outlook on Adani Green Energy Ltd. to negative from stable after the close of markets, citing a “large capital spending program and dependence on sponsor support.”