Adani Group stocks – Adani Transmission Ltd and Adani Total Gas Ltd slumped on Wednesday’s trading session after the shares were removed from the MSCI Global Standard Index in its latest rejig exercise. Indus Towers that to be removed from the index was also trading in red.
Adani Transmission began trading at ₹781.15, down 2.8% from the previous close, Adani Total Gas started trading at ₹674.95, down 3.4%, and Indus Tower opened trading at ₹154.15 on the BSE.
Three stocks to be included were Max Healthcare Institute Ltd (opened at ₹ 540.65, up 0.9%), Hindustan Aeronautics (HAL) (opened at ₹3,125.05, up 0.7%), and Sona BLW Precision Forgings (opened at ₹512.05, down 4%).
Adani Transmission and Adani Total Gas currently hold 0.31% and 0.28% weightages on the index, respectively, with 18 million equity shares.
In the meantime, Indus Towers will lose $84 million. With 44 million shares, Bharti Airtel now has a weightage of 0.14%.
According to Nuvama’s most recent update, “MSCI Rejig is scheduled for May 31, 2023, and India should receive net passive foreign flow in excess of $500 million.”
Nuvama’s most recent report said that Adani Transmission would depart the index, resulting in a $189 million outflow. While Adani Total Gas will lose $167 million. The two Adani companies will most certainly lose $356 million combined.
MSCI rejig from 31 May: Adani Transmission, Adani Total may see outflow of $356 million as they exit; details here
MSCI has announced a few modifications, and investors are expected to see turbulent moves ahead of the revisions’ effective dates (1st June). As a result, big changes in some of the heavyweights are expected on Wednesday (May 31st), according to ICICI Direct Research.
“The new additions in MSCI India index like Max Healthcare, Sona BLW and HAL have seen significant price performance recently. We can expect some pause after the activity in these stocks. At the same time, along with Kotak Bank, stocks like ONGC, Maruti and Ultratech Cement have seen increase in weights while heavyweights like Infosys, TCS and HDFC have seen weight reduction,” said the brokerage.