Adani Transmission, Adani Total Gas shares tank up to 3% as scrips exit MSCI Global Standard Index today


Adani Transmission share price sank 3% to Rs 776 while Adani Total Gas stock price tanked 3.4% to Rs 671.3 as MSCI excluded the embattled Adani group scrips from MSCI Global Standard Index in its latest rejig exercise, effective today. Indus Towers will also exit the index; while Max Healthcare Institute, Hindustan Aeronautics (HAL) and Sona BLW Precision Forgings have been included.

Additionally, Indus Towers fell 2.3%, touching an intraday low of Rs 153.10. Max Healthcare Institute, which was added to the index saw its share price fall 1.2%, making an intraday low of Rs 528.70. Additionally, Sona BLW Precision Forgings tanked 5.6% to Rs 503 per share, despite its addition to the MSCI Index. Hindustan Aeronautics gained 1.2% in trade.

About the MSCI rejig

On May 05, 2023, MSCI announced that the certain Foreign Inclusion Factor (FIF) changes for Adani Total Gas and Adani Transmission will be implemented in the May 2023 Index Review. Adani Total Gas’s FIF fell from from 0.25 to 0.14 while Adani Transmission’s FIF dropped from from 0.25 to 0.10. “As a result of these changes, these two securities will no longer be eligible for inclusion in the MSCI Global Investable Market Indexes (GIMI) as the companies will not meet the relevant free float-adjusted market capitalization requirements,” said MSCI.

According to Nuvama, the quarterly MSCI rejig will bring in passive inflows of $500 million. Max Healthcare Institute will bring inflows of $312 million, Hindustan Aeronautics will see $196 million in inflows while Sona BLW Precision will bring in $171 million. Alternatively, as a result of their departure from the index, Adani Total Gas will see $167 million outflows and Adani Transmission is expected to have outflows of $189 million.


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