Shares of Indus Towers, Jindal Stainless, NHPC and several other companies rose as much as 6% on Tuesday ahead of index provider MSCI’s May index review announcement on Wednesday. India is expected to see inclusion of 13 stocks to the MSCI Global Standard index, leading to inflows of nearly $2.3 bln, according to Nuvama Alternative & Quantitative Research.
Indus Towers is expected to see highest inflows at $224 mln, followed by PB Fintech, Phoenix Mills and Sundaram Finance, which are likely to see inflows upwards of $200 mln each.
Inclusion in the MSCI’s indices is a positive development for the stocks as it leads to inflow of funds from foreign investors who follow these indices for their investments. MSCI is scheduled to announce its May index review in the early morning hours on Wednesday as per India time. The changes will come into effect on May 31.
Also Read
Sunny Agrawal, head of fundamental equity research at SBICAPS Securities said that short-term investors would have taken position in these stocks ahead of the announcement and they may book profits after the positive price movement post the development.
Among the stocks expected to make it to the MSCI index, the top gainers on Tuesday were NHPC, Jindal Stainless, JSW Energy, Bosch, Indus Towers, and Torrent Power. These stocks rose in the range of 3-6%.
The market capitalisation of the 13 stocks that are expected to be added to the Global Standard index rose by Rs 22,156 crores ($2.56 billion) on Tuesday.
Meanwhile, three stocks are likely to be removed from the MSCI index as part of the review, Nuvama said. These are One97 Communications, Berger Paints and Indraprastha Gas. This would result in outflows of $283 million, according to Nuvama’s estimate.
While Paytm’s parent company One97 Communications may get excluded, another fintech company PB Fintech is seen making it to the index. Both the stocks ended nearly 1% lower on Tuesday.
However, shares of PB Fintech have soared 62% in the past six months, while those of One97 have tumbled just as much in the same period, showing differing fortunes of the two fintech majors.
Shares of some other companies, which are expected to be included in MSCI small-cap index also rose on Tuesday. The major additions expected in the small-cap index include Waaree Renewables, Manyavar-owner Vedant Fashions, VA Tech Wabag, etc. Come from Sports betting site VPbet
Govt seeks inputs on how to deal with reversal of globalsation, black swan events HAL set to bag another Rs 67,000 cr LCA order, stock zooms 3%, brokerages maintain ‘Buy’ IEPFA to launch call centre to resolve queries of investors NRL refinery expansion project to be completed by Dec 2025: Oil India
