Moody’s downgraded on Friday the ratings outlook for some Adani Group companies, while MSCI said it would cut the weightings of some in its stock indexes, the latest blows for the Indian conglomerate plunged into crisis by a short-seller’s report.
New York-based short-seller Hindenburg Research accused the Adani Group in a Jan. 24 report of stock manipulation and improper use of offshore tax havens that it said obscured the extent of Adani family stock ownership in group firms.
The conglomerate, which has denied any wrongdoing, has since seen $110 billion wiped off the value of its seven listed firms.
The crisis has sparked worries of financial contagion in India and protests in parliament where lawmakers have demanded an investigation.
It has also put the spotlight on the dwindling fortunes of 60-year-old billionaire founder Gautam Adani, who was forced to shelve a $2.5 billion stock offering amid the market meltdown.
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