After removal from S&P indices, Adani Port stock sinks.
In Tuesday’s strong market on the NSE, Adani Ports stock lost 1.6%, thereby making it the biggest shirker among Nifty scrips. This happened after the stock was removed from S&P Dow Jones sustainability indices on account of its commercial relationships with the Myanmar military. A release from the S&P Group Company said that the change in the indices will be effective April 15.
However, Adani Ports, which is the second-most valued company within Adani Group, has denied recent media reports regarding its associations with the Myanmar military regime.
Globally, a large number of fund managers follow the S&P Dow Jones sustainability indices. All these fund managers would be forced to sell the Adani Port stock as a result of the exclusion from the index. Ahead of the April 15 deadline for funds to rebalance their portfolios, the local and global investors have sold the stock.
Late on Monday, S&P Dow Jones Indices had announced that Adani Ports will be removed from the indices, following a media and stakeholder analysis prompted by recent news events pointing to increased risks to the company regarding their commercial relationship with Myanmar’s military, who are alleged to have committed serious human rights abuses under the International law.