Shares of Adani Group companies remained under pressure on Friday as global index provider MSCI reduced the quantum of freely tradable shares in its calculation for some of the firms.

The MSCI has changed the foreign inclusion factor in Adani Transmission, Adani Total Gas and Adani Enterprises, which could lead to estimated outflows of $416 million in these companies. The MSCI passive trackers will implement changes on February 28.

Adani Enterprises is expected to see its weight decline by 30 bps, which could lead to outflows of around $161 million, according to estimates by Nuvama Alternative & Quant Research. Adani Transmission and Adani Total Gas will see their weights decline by 30 bps and 20 bps, resulting in estimated outflows of $145 million and $110 million, respectively. ACC’s weight will reduce by 2 bps, resulting in outflows of $12 million.

The affected securities will be further reviewed as part of the full country float review in May, which could lead to some index deletions and more passive selling, according to experts.

The MSCI defines the free float of a security as the proportion of shares outstanding that is considered available for purchase in the public equity markets by international investors.

Flagship Adani Enterprises slid 4.1% on Friday to Rs 1,847 after slipping 10.7% on Thursday. The stock had rallied 35% in the previous two sessions.

Adani Green Energy, Adani Total Gas, Adani Transmission and Adani Power slid 5?ch. Ambuja Cements and Adani Ports were the only two group companies to end in the green, up 0.8% and 0.3%, respectively.

Adani Green Energy, Adani Total Gas and Adani Transmission hit their 52-week lows on Friday. ACC, Adani Enterprises and Adani Ports & SEZ have also hit their 52-week lows this month.

Moody’s on Friday downgraded its ratings outlook to ‘negative’ from ‘stable’ for Adani Green Energy; the Adani Green Energy Restricted Group, which represents some of its other units; and two subsidiaries of Adani Transmission. “These rating actions follow the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a report from a short-seller highlighting governance concerns in the group,” Moody’s said.

On Tuesday, the rating agency said banks’ exposure to Adani Group is less than 1% of their total loans. However, risks for banks can increase if Adani becomes more reliant on bank loans, given that the group’s access to funding from international markets can be curtailed because of heightened risk perception.

On Thursday, Norway’s $1.35-trillion sovereign wealth fund said it had divested almost all its remaining shares in companies belonging to Adani Group in the past few weeks, according to a report by Reuters. The fund held shares in Adani Green Energy worth $52.7 million, Adani Total Gas ($83.6 million) and Adani Ports & Special Economic Zone ($63.4 million) at the end of CY22.

The surge in shares of some of the group companies earlier this week came after the group announced its decision to pre-pay $1.11 billion of loans on shares ahead of maturity in 2024. Some of the group’s recent earnings reports also boosted investor confidence.

However, a news report by the Financial Times on Thursday indicated that the prepayment of the $1.1bn share-backed loan happened after a margin call of more than $500 million and was designed to avoid further damage to investor confidence in the group.