Some Adani company shares had been rebounding this week but tumbled again on Thursday after the MSCI announcement. Adani Enterprises sank 11 percent, after losing as much as 20 percent in early morning trade.
Adani Transmission, Adani Total Gas ADAG.NS and Adani Power ADAN.NS were each down 5 percent, while Adani Ports and Special Economic Zone APSE.NS were down nearly 3 percent.
“The sentiment is affected by the MSCI announcement. It will lead to outflows if MSCI removes certain stocks,” said Ambareesh Baliga, a Mumbai-based independent market analyst.
The MSCI announcement marks the latest setback for Adani. His flagship Adani Enterprises was forced to abandon a $2.5 billion stock offering due to the market rout.
Indian opposition parties see the affair as an opportunity to corner Prime Minister Modi, who is eyeing a third term in elections next year. They accuse his government of giving undue favours to the Adani Group, a charge denied by the government and the company.
Sporadic protests have taken place in parts of the country as opposition parties demand investigations.