MSCI delays cut in index weightage of two Adani stocks

BL Mumbai Bureau Updated - February 16, 2023 at 08:45 PM.

Decision in light of potential replicability issues due to impact from price-limit mechanisms in specific securities associated with the Adani Group

MSCI is delaying the measures for Adani Total Gas and Adani Transmission

Global index service provider MSCI (Morgan Stanley Capital International) said that it will delay implementing weight changes for some Adani Group companies until May. Among the list of Adani companies, MSCI is delaying the measures for two — Adani Total Gas and Adani Transmission. There were fears that MSCI would reduce the weight.

Earlier this month, MSCI had said that it would reduce the weightage of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC in its indices. But it has not taken any such action.

The index provider said the changes will be reflected in the May index review instead of February’s. Its decision came “in light of potential replicability issues due to impact from price-limit mechanisms in specific securities associated with the Adani Group,” MSCI said.

At the end of January, the four Adani companies had a combined 0.4 per cent weight in MSCI’s Emerging Markets Index, as per news reports.

Published on February 16, 2023 15:07

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