JP Morgan dumps Adani stocks from its ESG funds as they continue losing value

Adani stocks are bleeding as shares of group firms have crashed by as much as 84 per cent since Hindenburg Research triggered off a storm. Although LIC and Indian banks have maintained that exposure to the Adani Group is within manageable limits, global entities seem confirmed. Losing market value without any respite, Adani stocks have been abandoned by JP Morgan Chase, from its environmental and social governance funds.

At the same time Blackrock and the DWS Group are still holding on to Adani stocks in ESG funds offered by MSCI, which stripped some Adani firms of the free float status. MSCI hasn't adjusted its ESG ratings for Adani, but will be implementing a review of ESG and climate indexes this month. As of now, JP Morgan still owns Adani stocks in the non-ESG funds, as the group is becoming more toxic for fund managers.

Currently, Adani stocks are part of 500 ESG funds in Europe, which includes funds with at least $10 billion under management. While they are on the MSCI ESG indexes, S&P has removed Adani stocks from its sustainability index, and Sustainalytics has downgraded the ESG scores of the group's firms. But MSCI has previously looked into ESG controversies related to Adani, and its firms had been lagging back in governance even before the Hindenburg report arrived.