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 re-balancing could be from May 31, according to a report by Edelweiss Alternative & Quantitative Research.
The report added that HDFC AMC could get excluded from the index, while Indraprastha Gas may have managed to remain in the index.
“Going by our past experience of analysing semi-annual reviews, we believe that the MSCI May 22 SAIR market cap cut-off date has already been selected in the previous week. In the week gone by, we saw immense price volatility in all the potential inclusion names which led them to trade on and around the market-cap cut-off levels,” Edelweiss said in the report, according to a livemint report.
Edelweiss added that as per the quarterly shareholding analysis, there is a possibility of foreign inclusion factors (FIF) increase in IGL and if that happens then the counter could be saved from getting excluded. “If MSCI keeps the FIF status quo then, IGL could see an outflow of USD 85 million.”
A security’s FIF must reach a certain threshold to be eligible for inclusion under the MSCI index. The FIF is the proportion of shares outstanding that is available for purchase in the public equity markets by international investors.
Shares of Jindal Steel & Power Ltd (JSPL) on Wednesday were trading up 0.11 per cent at Rs 526 apiece, while Adani Power was up by 4.43 per cent at Rs 298.40 apiece. However, Tata Elxsi was trading down at Rs 7,575 apiece, 3.43 per cent down as compared with the previous close.
Adani Power has also entered 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 thermal power producer 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 Trade Today
Tracking global weakness, domestic benchmark indices Sensex and Nifty started trading lower on Wednesday. The Sensex was down 366.36 points or 0.64 per cent at 56,990.25 and the Nifty was down 125.60 points or 0.73 per cent at 17,075.20.
Among the 30-share Sensex, Bajaj twins, L&T, Ultratech Cement, Maruti, M&M, Infosys, Axis Bank, ITC and Wipro, meanwhile, were the top laggards, slipping up to 4 per cent. On the other side, NTPC, Tata Steel, Sun Pharma, HDFC Life, Hindalco, Adani Ports were the top benchmark gainers.
BSE MidCap and SmallCap indices also opened in the red down, trading lower by up to 0.24 per cent. Sector-wise, Nifty IT, financials, bank and auto led losses, falling up to 1 per cent. The Nifty Metal index was the only one in the green.