Adani Power may make it to MSCI index, says report. Here are two other stocks
Premium- ‘We saw immense price volatility in all the potential inclusion names which led them to trade on and around market-cap cut off levels’: Report
Edelweiss Alternative & Quantitative Research believes that Jindal Steel & Power, Adani Power and Tata Elxsi could get included in the MSCI India index. The MSCI index review announcement is likely on May 13 and the re-balancing could be from May 31. Adani Power shares were up 5% in a Mumbai market which fell over 1%. On the other hand, JSPL and Tata Elxsi shares were lower today.
“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 market-cap cut off levels," Edelweiss said in a note.
Edelweiss also believes that HDFC AMC could get excluded from the index while Indraprastha Gas may have managed to remain in the index.
“As per our quarterly shareholding analysis, we believe there is a possibility of FIF or Foreign Inclusion Factors 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 85mn," Edelweiss Alternative said.
To be eligible for inclusion in a MSCI index, a security’s Foreign Inclusion Factor (FIF) must reach a certain threshold. The FIF of a security is defined as the proportion of shares outstanding that is available for purchase in the public equity markets by international investors.
On Reliance Industries, Edelweiss said: “Post the conversion of partly paid-up shares to ordinary shares in November 2021, the domestic Indices (Nifty and Sensex) have already made the adjustments and now we are expecting MSCI to take the same into account in the May Review. The ballpark inflow could be around 200 million."
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