MSCI delays weighting cuts for two Adani companies, cites 'replicability' concerns

Index supplier MSCI said that it volition hold implementing weighting changes for immoderate Adani Group companies until aboriginal this year, according to a Thursday announcement.

The alteration successful plans came aft MSCI earlier this period said it volition trim the weightings of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC, a large Indian cement institution the Adani Group acquired from Holcim past year. The determination was made aft MSCI reassessed the fig of shares that are freely traded, it had said.

Among the database of Adani companies, MSCI is delaying the measures for 2 companies: Adani Total Gas and Adani Transmission, according to its Thursday greeting notice.

As of the extremity of January, the 4 Adani-related companies had a combined 0.4% weighting connected MSCI's Emerging Markets Index, Reuters reported.

MSCI said the changes volition beryllium reflected successful the May scale reappraisal alternatively of February's. The steadfast explained the determination came "in airy of imaginable replicability issues owed to interaction from terms bounds mechanisms successful circumstantial securities associated with the Adani Group."

MSCI said it volition use peculiar attraction for each Adani Group's associated securities, citing "ongoing uncertainty with narration to cardinal input information for scale construction."

As such, MSCI volition not marque immoderate changes – including additions, deletions and constraint origin changes – successful non-market capitalization weighted indexes and customized indexes specified arsenic the MSCI Factor, ESG, thematic and capped indexes, it said.

Shares of Adani Group companies mostly traded higher successful Mumbai connected Thursday, but for Adani Total Gas which fell astir 2%. Adani Transmission inched 1% higher.

Adani Enterprises roseate  2.7%, Adani Port and Special Economic Zone roseate 2.3%, Adani Green Energy roseate 2.4% and Adani Power roseate 5%.