MSCI resumes Adani stock adjustments after Hindenburg report; Adds eight new stocks to India Index

Mumbai: Global index provider Morgan Stanley Capital International (MSCI) has announced the removal of the freeze on Adani Group stocks, a move that comes amid ongoing scrutiny following the Hindenburg Research allegations.
Starting with the August 2024 Index Review, MSCI will implement changes. The adjustments will include updates to the Number of Shares (NOS), Foreign Inclusion Factor (FIF), and Domestic Inclusion Factor (DIF) for Adani Group and associated securities.
According to the announcement, these changes will take effect at the close of August 30 and will be fully implemented by September 2. MSCI clarified that it will also resume the regular implementation of corporate events for these securities from September 2 onwards.
"MSCI clarifies that starting from the August 2024 Index Review, MSCI will implement the index review changes, including changes in the Number of Shares (NOS), Foreign Inclusion Factor (FIF) and Domestic Inclusion Factor (DIF) of Adani Group and associated securities that have been previously postponed. MSCI will also resume the regular implementation of corporate events for these securities effective September 2, 2024. The proforma FIF and DIF for these securities are announced along with the August 2024 Index Review announcement. The changes will be implemented as of the close of August 30, 2024 (effective September 2, 2024)," the statement from MSCI read.
Despite lifting the freeze, MSCI emphasized that it will continue to closely monitor the Adani Group and associated securities, particularly concerning their free float status.
The index provider stated that it would issue further communication if necessary, indicating that the group remains under observation.
In addition to the updates on Adani stocks, MSCI also announced the inclusion of eight new securities in its MSCI India Index. The newly added securities are Bosch, Dixon Technologies India, Oil India, PB Fintech, Phoenix Mills, Rail Vikas Nigam, Vodafone Idea, and Zydus Lifesciences. Notably, no securities were deleted from the index in this review.