Adani Power & Two Other Stocks Could Be Added to MSCI Index, HDFC AMC Omitted

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Adani Power & Two Other Stocks Could Be Added to MSCI Index, HDFC AMC Omitted

By Malvika Gurung -- 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.

The brokerage also expects HDFC Asset Management Company (NS: HDFA ) to be removed from the index, along with the natural gas distribution company Indraprastha Gas

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”.

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