By Malvika Gurung
Investing.com -- In the semi-annual index review of global index provider MSCI next month, there are chances of three Indian stocks getting added to the index, while two stocks could get removed.
According to Edelweiss Alternative & Quantitative Research, Adani Power (NS: ADAN ), Jindal Steel & Power (NS: JNSP ) and Tata Elxsi (NS: TTEX ) are likely to get included in the MSCI India index next month.
The review announcement is expected on May 13, followed by re-balancing starting from around May 31.
However, if the Foreign Inclusion Factors (FIF) rise in Indraprastha Gas (NS: IGAS ), which the quarterly shareholding analysis by Edelweiss indicates could rise, the gas company would be warded off from getting excluded from the MSCI index.
If MSCI maintains a status quo on FIF, the stock could be removed from the index, witnessing an outflow of $85 million.
The brokerage said in a note, “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”.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.