Norway excludes Adani Ports from govt pension fund:

Norway’s central bank announced that its executive board has decided to exclude three companies from its government pension fund over ethical concerns. Norges Bank, which manages the sovereign wealth fund, said in a statement it has decided to exclude India’s Adani Ports and Special Economic Zone, L3Harris Technologies and China’s Weichai Power.

Norges Bank said it decided to exclude Adani Ports due to ‘unacceptable risk that the company contributes to serious violations of individuals’ rights in situations of war or conflict.’ Billionaire Gautam Adani’s port major was on the central banks’ watchlist for possible exclusion from investment since March 2022, according to news agency Reuters.

Adani Ports to witness selling pressure, say analysts

Norges Bank’s decision to exclude Adani Ports from its government pension fund due to human rights concerns could potentially lead to some foreign institutional investors (FIIs) re-evaluating their positions. As a sizeable sovereign wealth fund, this divestment may catch the attention of other ethical investors, according to analysts.

‘’The magnitude of any outflow is difficult to predict and will depend on factors like Adani Ports’ foreign institutional ownership levels and whether other major funds follow Norges Bank’s lead. The stock may see some selling pressure in the near term, though the long-term impact will likely be determined by the company’s response and its ability to assuage the concerns raised over alleged rights violations,” said Atul Parakh, CEO of Bigul.

Overall investor conviction in the company’s fundamentals will play a key role in any material outflows.