Adani Enterprises to be removed from S&P Dow Jones Index after its shares tank

As stocks attached to Adani Group firms continue to plummet, the S&P Dow Jones Indices on Thursday said that it will remove Adani Enterprises from its sustainability indices following a media and stakeholder analysis triggered by allegations of stock manipulation and accounting fraud.

The official statement of S&P Dow Jones Indices read, “S&P Dow Jones Indices will make the following changes to the Dow Jones Sustainability Indices, effective prior to the open on Tuesday, February 7, 2023.”

S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data, and research and home to iconic financial market indicators.

Adani Group’s stocks plunge

The stocks of the Adani Group continued to plunge Thursday and fell by at least 26 percent.  According to the National Stock Exchange, the scrip of Adani Group's flagship firm Adani Enterprises currently stands at 1,565.30. The Adani Enterprises stock price halved at 2996.20 on Wednesday morning, while it slumped to 2,179.75 by the time the market closed. 

As per the reports, Adani Group firms have lost Rs 8.76 lakh crore in market capitalisation in just the last six trading sessions. The group’s flagship Adani Enterprises eroded $26.17 billion in market value during the same period.

RBI asks Indian banks for details of exposure to Adani Group: Sources

According to sources, the Reserve Bank of India (RBI) on Thursday asked Indian banks for details on their exposure to the Adani Group companies. The alleged development came after the stocks attached to the firms plunged following the withdrawal of the firm’s FPO. However, no official statement has been issued by the country’s central bank. 

Notbaly, Gautam Adani decided to call off the fully-subscribed FPO in view of the “unprecedented situation”, following the release of a controversial short-seller report. He added that it would not be "morally correct" to go ahead with the Rs 20,000-crore share sale in the current market condition.