Adani Group share prices witnessed yet another day of decline on the stock exchanges. Analysts attributed Friday’s fall to the news of Morgan Stanley Capital International (MSCI), the global index provider, announcing that it would cut the amount of free float shares of Adani Group that are available for trading. This led to speculation in the market that eventually the weightage of Adani Group shares could also be revised downwards by MSCI. Most global funds track MSCI indices and invest in stocks as per their weightage. Higher the weightage in the index more is the investment and vice-versa. 

The share price of Adani Enterprises declined 4.15 per cent, Adani Power was down 4.97 per cent, and Adani Transmission fell 5 per cent. Adani Ports rose marginally by 0.83 per cent.  Adani Group’s four four companies, for which the free float designation change was announced, had a combined weight of 0.4 per cent in the MSCI emerging markets index as on January 30.

MSCI said it would be conducting a further review on the stocks, including the amount of shares linked to the group that were freely tradable in public markets, after determining that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float pursuant to its methodology.

“MSCI has received feedback from a range of market participants concerning the eligibility and free float determination of specific securities associated with the Adani Group for the MSCI Global Investable Market Indexes (GIMI),” it had said in a statement.

MSCI had said last month that it has sought feedback from market participants on Adani Group’s situation, and that it is closely monitoring any information that would prevent the conglomerate’s securities from being eligible for its gauges.

Adani Group has witnessed a rout of $ 100 billion in the share markets after US based Hindenburg Research levelled several allegations against the companies on January 24. The slump in the group’s dollar debt has attracted buyers such as Oaktree Capital Management and Davidson Kempner Capital Management.