Adani Enterprises Shares Will Be Removed From Dow Jones Sustainability Indices: Report

Since the release of the Hindenburg report, problems for Adani Group appear to be getting worse. According to a report,  Adani Enterprises will most recently be removed from the S&P Dow Jones Sustainability Indices before to their launch on February 7.

Adani Enterprises will be removed from the indices, they declared in a statement, as a result of media and stakeholder analysis brought on by allegations of stock manipulation and accounting fraud.

The suspension of Adani Enterprises from the Dow Jones comes a day after the National Stock Exchange added additional surveillance to three Adani Group companies, including Adani Enterprises, Adani Ports, and Ambuja Cements, as of today, February 3.

What are Dow Jones Sustainability Indices?

The S&P Global Corporate Sustainability Assessment results are used by the Dow Jones Sustainability Indices to rank companies in 61 industries and assign them a score. For investors that use sustainability as one of their criteria for adding stocks to their portfolios, these index ratings serve as benchmarks. Additionally, this encourages businesses to enhance their internal sustainability practices.

Although it won't have a direct effect on Adani Group shares, there's a risk that it will make investors less likely to purchase Adani Enterprises shares.

Credi Sussie and CitiGroup remove the value of lending from Adani equities.

Not only that, but CitiGroup and Credit Suisse have stopped supporting the group. Adani shares have fallen by nearly 26% as a result of Credit Suisse giving Adani Ports, Adani Green, and Adani Electricity a zero-lending value. This had a direct impact on the market because investors were hesitant to purchase the company's stock.

Even CitiGroup reportedly stopped providing margin loans on Adani Securities and nullified the lending value of the Adani Group.

Hindenburg Research vs. Adani

Since a report by Hindenburg Research alleged that the Adani Group was using offshore tax havens improperly, the group has come under scrutiny.

The Adani group also withdrew its FPO, which had received a full subscription and had a value of Rs 20,000 crore. After their stock prices dropped, Gautam Adani stated that continuing with it would not have been "morally correct."