Adani trio to move out of ASM framework from Monday; what should investors do?

In addition to these Adani Group stocks, five other stocks, including OM Infra Ltd, PC Jeweller Ltd

On Friday, both the BSE and NSE announced that three companies belonging to the Adani Group - Adani Total Gas Ltd, Adani Transmission Ltd, and Adani Green Energy Ltd - will be removed from the ASM framework starting May 15. These stocks were placed under the ASM framework after allegations of stock manipulation in Adani Group stocks by Hindenburg. The ASM framework was introduced to protect investor interest and promote market integrity.

In addition to these Adani Group stocks, five other stocks, including OM Infra Ltd, PC Jeweller Ltd, Upsurge Seeds of Agriculture Ltd, Network People Services Technologies Ltd, and Cadsys (India) Ltd, will also be excluded from the ASM framework on the NSE, effective May 15, 2023.

During Friday’s session, Adani Total Gas Ltd and Adani Transmission Ltd experienced high volatility and settled lower by 4.29 per cent and 3.54 per cent, respectively. As part of its quarterly comprehensive review, the MSCI Global Standard Index would exit from the Adani duo, and these adjustments would take place on May 31, 2023. Adani Green Ltd. ended the day with a loss of 1.96 per cent on Friday.

The impact of this news, which is the removal of these stocks from the ASM framework, will only be seen in Monday's trading session. Therefore, market participants can keep a close watch on these stocks.