The Dow Jones Industrial Average(DJIA) also known as the Dow Jones is an index of 30 top American companies. Its origin dates back to the 1890s, it only held 12 stocks. The index was a simple average of those stock’s values in terms of dollars.
The Dow Jones to drop Adani Group’s flagship company Adani Enterprises from sustainability indices before 7th Feb 2023.
After the US based short -seller Hindenburg Research firm’s allegations of brazen stock manipulation and accounting fraud scheme on Adani group led by Gautam Adani, the group have been experiencing downfall ever since the release of the scathing report damaging the reputation of the Indian Conglomerate.
The National Stock Exchange (NSE) put three stocks of Adani group – Adani Enterprises, Adani Ports and Ambuja Cement -under the Additional Surveillance Measures (ASM) framework. These stocks will need 100 percent margin to trade.
According to the sources, NSE mentioned that, “There shall be Additional Surveillance Measures on securities with surveillance concerns based on objective parameters viz. Price/Volume variation, Volatility etc”.
As per the reports, S&P Dow Jones indices said it would remove Adani Enterprises from the sustainability index following a media and stakeholder analysis triggered by allegations of brazen stock manipulation and accounting fraud. It also mentioned that the changes will be made to the sustainability indices effective prior to opening on 7th Feb 2023.
As per the data, in just six sessions of trade Adani group has witnessed a loss of Rs. 8.76 lakh crore in market cap .
After Credit Suisse, even Citi Bank Group has stopped lending against Adani group securities. Zero lending value has been assigned to Adani bonds by Credit Suisse and Citi Bank Group; they no longer accept bonds of the conglomerate as collateral for margin loans.
