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Adani Shares Slide as MSCI Rebalancing Amplifies Market Fears
Indian stocks fell on Monday.
Investors were worried that higher crude prices could hurt markets.
They were also concerned that the United States might raise interest rates.
The Nifty 50 and Sensex both declined.
Shares of all nine listed Adani Group companies fell.
Together, the companies lost about ₹1.4 lakh crore in market value.
Adani Enterprises dropped 9.8%, and Adani Energy Solutions fell by more than 10%.
Changes to an MSCI index and India’s closing auction caused especially large price movements near the end of trading.
India’s Nifty 50 fell 0.39% to 24,080.40 points on Monday.
The BSE Sensex declined 0.4% to 76,957.27 points.
Adani Group companies lost ₹1.4 lakh crore, or about $15 billion, in market value.
Adani Enterprises plunged 9.8%, while Adani Energy Solutions fell more than 10%.
Higher crude prices, US rate-hike fears, MSCI rebalancing and a new closing mechanism drove volatility.
- Who
- Indian investors, the Adani Group’s nine listed companies, passive funds and MSCI index participants.
- What
- Indian stocks fell, while Adani Group companies suffered a combined ₹1.4 lakh crore decline in market value.
- Where
- India’s stock markets.
- When
- Monday; the broader indices also recorded declines during August.
- Why
- Higher crude prices, fears of US rate hikes, MSCI index rebalancing and a new stock closing mechanism affected investor appetite and trading volatility.
Key facts
- Nifty 50
- Fell 0.39% to 24,080.40 points.
- BSE Sensex
- Declined 0.4% to 76,957.27 points.
- August performance
- The Nifty 50 fell 1.2% and the Sensex fell 1.5% in August.
- Adani Group loss
- Listed Adani companies lost ₹1.4 lakh crore, or about $15 billion, in market value.
- Adani Enterprises
- Dropped 9.8%, its biggest one-day decline since January.
- Adani Energy Solutions
- Fell more than 10%.
- Trading catalyst
- Passive funds adjusted holdings during scheduled MSCI index rebalancing.
Sources
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