MUMBAI: Adani Ports stock lost 1.6% in Tuesday’s strong market on the NSE, making it the biggest laggard among Nifty scrips.
The slide came after the stock was removed from S&P Dow Jones sustainability indices because of its commercial relationships with Myanmar military. The change in the indices will be effective April 15, a release from the S&P Group company said.
Adani Ports, the second-most valued company within Adani Group, has denied recent media reports about its links with the Mayanmar military regime.
The S&P Dow Jones sustainability indices are followed by a large number of fund managers globally. The exclusion from the index would force all these funds to sell the Adani Ports stock.
Local and global investors sold the stock ahead of the April 15 deadline for funds to rebalance their portfolios and hence the sharp slide, market players said.
Late on Monday, S&P Dow Jones Indices said Adani Ports will be removed from the indices following a media and stakeholder analysis triggered by recent news events pointing to heightened risks to the company regarding their commercial relationship with Myanmar’s military, who are alleged to have committed serious human rights abuses under international law.