Jindal Steel & Power, Adani Power and Tata Elxsi are expected to be included in the MSCI India index and the announcement is likely to be made on May 13. The rebalancing could take place from May 31, according to a report by Edelweiss Alternative & Quantitative Research.
The report added that HDFC AMC could be excluded from the index, while Indraprastha Gas has managed to stay in the index.
“Based on our previous experience analyzing semi-annual assessments, we believe that the MSCI May 22 SAIR cut-off date for market cap was already selected in the previous week. Over the past week, we saw tremendous price volatility in all potential inclusion names, leading them to trade at and around market cap levels,” Edelweiss said in the report, according to a livemint report.
Edelweiss added that according to the quarterly stock analysis, there is a possibility that foreign inclusive actors (FIF) will increase in IGL and if that happens, the counter could be saved from foreclosure. “If MSCI maintains the FIF status quo, IGL could see an outflow of USD 85 million.”
A security’s FIF must reach a certain threshold to be eligible for inclusion in the MSCI index. The FIF is the portion of the outstanding shares available for purchase in the public stock markets by international investors.
Shares of Jindal Steel & Power Ltd (JSPL) rose 0.11 percent at Rs 526 each on Wednesday, while Adani Power rose 4.43 percent at Rs 298.40 each. However, Tata Elxsi was trading at Rs 7,575 apiece, down 3.43 percent from the previous close.
Adani Power also joined the coveted Rs 1-lakh-crore market cap club on Monday. The company, which is part of the diversified conglomerate Adani Group, is the largest private producer of thermal energy in India with a capacity of 12,450 megawatts (MW). It has thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan and Chhattisgarh, and a 40 MW solar power project in Gujarat.
The stock market in early trading today
Domestic benchmark indices Sensex and Nifty tracked global weakness and started trading lower on Wednesday. The Sensex fell 366.36 points or 0.64 percent at 56,990.25 and the Nifty fell 125.60 points or 0.73 percent at 17,075.20.
Of the 30 stocks Sensex, Bajaj twins, L&T, Ultratech Cement, Maruti, M&M, Infosys, Axis Bank, ITC and Wipro, meanwhile, were the biggest laggards, falling to 4 percent. On the other hand, NTPC, Tata Steel, Sun Pharma, HDFC Life, Hindalco and Adani Ports were the biggest winners of the benchmark.
BSE MidCap and SmallCap indices also opened in the red, trading lower to 0.24 percent. Sector-wise, Nifty IT, financials, banks and autos led losses, falling to 1 percent. The Nifty Metal index was the only one in the green.
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