Adani Group stocks tumbled during the closing auction tied to MSCI's scheduled rebalancing, erasing 1.4 trillion rupees (about $15 billion) in market capitalization. It was the group's heaviest single-day value decline in about 21 months and the largest since November 2024. The late-session swings were amplified as passive funds shifted positions to match the revamped index weights.
Adani Enterprises Ltd. slid 9.8% in Mumbai, marking its sharpest daily fall since January. Adani Energy Solutions Ltd. retreated by more than 10%. All nine companies in the ports-to-power group ended in the red, and three of them declined by upwards of 6%.
Even with roughly $4.2 billion absorbed from MSCI-related flows, the new end-of-day pricing setup saw pronounced volatility, prompting some traders to question its rollout. Nuvama Alternative & Quantitative Research projected that passive funds would allocate about $310 million to Adani Energy after its addition to the MSCI Standard Index, alongside estimated inflows of $202 million to Adani Enterprises and $77 million to the ports unit.
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The drop comes after a November 2024 episode when U.S. prosecutors charged Chairman Gautam Adani in relation to alleged bribery tied to solar-energy contracts in India. Adani and the group's companies consistently rejected the accusations, and earlier this month the billionaire secured dismissal of the U.S. fraud probe, removing a legal overhang. "The sharp fall in the two Adani counters, despite passive buying, suggests that traders built positions that didn't meet expectations, possibly leading to forced liquidation," said Arun Kejriwal, founder of Kejriwal Research & Investment Services.
