MSCI rejig on May 31: Adani Transmission, Adani Total to exit; HAL, Max Health to be included

Shares of Adani Transmission, Adani Total Gas and Indus Towers will exit the MSCI Global Standard Index on May 31, 2023, as a part of the May rejig exercise. On the other hand, Max Healthcare Institute, Hindustan Aeronautics (HAL) and Sona BLW Precision Forgings will make an entry into the index.

The exit of Adani companies from the MSCI Global Standard Index is expected to trigger outflows of $189 million in the case of Adani Transmission and $167 million in the case of Adani Total Gas, according to a Nuvama Alternative & Quantitative Research report.

The exit will see 18 million shares each of both the Adani Group stocks getting offloaded from the index, the report said further. The stocks carry weights of 0.31 and 0.28, respectively according to the report.

Likewise, the exit of Indus Towers is expected to result in outflows of $84 million. Around 44 million shares will be offloaded as a part of the exercise. The weight of Indus Towers is 0.14.

Meanwhile, Max Healthcare’s addition will result in inflows of $312 million while 47 million shares will be added to the index. It will carry a weight of 0.52. HAL and Sona BLW’s inclusion in the index will likely bring inflows of $196 million and $171 million. They will carry a weight of 0.33 and 0.29, respectively according to Nuvama.

On the other hand, 16 stocks will witness an addition to their weights while 21 will see their weights getting slashed.

Zomato will see an addition to its weight in the index which will trigger inflows of $63 million and add 77 million shares. The weight will go up by 10 bps taking it to 0.4. The average volume is expected to go up by 0.8 times.Other stocks that will see their weights in the MSCI Global Standard Index go up include Maruti Suzuki India, Kotak Mahindra Bank, Interglobe Aviation, Samvardhana Motherson International, Cipla, Yes Bank, Bandhan Bank and NTPC among others.


While the weights of Reliance Industries, Infosys, ICICI Bank, JSW Steel, Axis Bank, Hindustan Unilever, Tech Mahindra, Dr Reddy’s Laboratories and Bharti Airtel will come down.


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