Adani Stocks | Gautam Adani: U-turn! Adani shares are rallying at lower levels when buying

Of the 10 Adani shares, eight traded in the green, with NDTV and Adani Power sticking to their 5% caps. Adani Group’s flagship, Adani Enterprises, rose 2.4% to Rs.1,821.

Earlier in the day, index provider MSCI said it would defer implementation of updates to Adani Total Gas and Adani Transmission weights until the benchmark review in May. However, both stocks were trading in the red today.

Reducing weights in MSCI indices not only drives outflows from passive funds, but is also viewed as sentimentally negative by the investment community.

MSCI previously announced it would reduce weightings on four Adani Group companies – Adani Total Gas, Adani Transmission, Adani Enterprises and ACC – effective March 1. The four companies had a combined weighting of 0.4% in the MSCI Emerging Markets Index 30 in January.

In the last 16 trading sessions since American short seller Hindenburg Research released an explosive report, Adani shares have lost about half their market value, or almost Rs 10 lakh crore.

The conglomerate, run by billionaire Gautam Adani, has sought to calm the nerves of investors worried about the allegations made in the report. Senior officials at the company are said to be holding talks with bondholders following a fall in the price of its debt. In a compendium filed with the exchanges, the conglomerate said it has “no material refinancing risk, no short-term liquidity needs and no significant near-term debt maturity.” Citing rating confirmations from international and domestic rating agencies, it also said, “means the underlying credit quality with an appropriate financial profile”.