Analysts positive on Grasim, expect 8-9% upside in coming two week
MUMBAI: Shares of Grasim Industries rose up to 5% on Friday after the company was added to the MSCI Emerging Markets Index, boosting the prospects of further foreign investor interest in it. Grasim was the only Indian company that was added to the index this time.
Analysts expect an 8-9% upside in the stock in the coming two weeks.
Notwithstanding the uncertainty surrounding the Idea-Vodafone merger and Grasim’s possible status as the holding company, analysts said its business outlook was encouraging. “We continue to have a positive view on the VSF and Cement businesses of the company in the coming quarters,” said Prateek Kumar, analyst at Antique Stock Broking..
The stock will see increased inflow to the tune of $75 million on account of the addition to the index, said analysts. “This was a surprise addition to the index; the stock would see foreign inflow as a result of the addition,” said Kumar of Antique.
Stocks that get included in the MSCI indices tend to attract foreign inflow based on the weightage assigned to them in the index. Exchange traded funds also track such inclusions and assign corresponding weightage to the stock in the fund. Grasim was the only inclusion to the Indiaindex in MSCI’s February 2017 Quarterly Index Review.The stock will also be added to the MSCI ACWI Value Index.
The stock has risen 48% in the last one year against the Sensex's gain of 19.2% in the period.
Analysts expect an 8-9% upside in the stock in the coming two weeks.
Notwithstanding the uncertainty surrounding the Idea-Vodafone merger and Grasim’s possible status as the holding company, analysts said its business outlook was encouraging. “We continue to have a positive view on the VSF and Cement businesses of the company in the coming quarters,” said Prateek Kumar, analyst at Antique Stock Broking..
The stock will see increased inflow to the tune of $75 million on account of the addition to the index, said analysts. “This was a surprise addition to the index; the stock would see foreign inflow as a result of the addition,” said Kumar of Antique.
Stocks that get included in the MSCI indices tend to attract foreign inflow based on the weightage assigned to them in the index. Exchange traded funds also track such inclusions and assign corresponding weightage to the stock in the fund. Grasim was the only inclusion to the Indiaindex in MSCI’s February 2017 Quarterly Index Review.The stock will also be added to the MSCI ACWI Value Index.
The stock has risen 48% in the last one year against the Sensex's gain of 19.2% in the period.
