MSCI said it will cut the weightings of Adani Enterprises and three other Adani firms in its indexes - the latest blow to the Indian conglomerate thrust into crisis by a short-seller's report.
, a major Indian cement company acquired from Switzerland's Holcim last year and which is not one of the Adani group's main seven listed firms.
"The lower free float will require passive investors to sell stock to reduce their tracking error with the index," said Brian Freitas, a Periscope Analytics analyst who publishes on Smartkarma. The stock rout has heightened worries that the loss of confidence in the group led by billionaire Gautam Adani could evolve into loss of confidence in Indian businesses generally.
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