3 Adani group stocks, SBI Cards, Apollo Hospital enter MSCI India index

KS Badri Narayanan Chennai | Updated on May 12, 2021

Burger India, IRCTC, Route Mobile, Happiest Minds, CAMS, Sun TV, UTI Asset now part of MSCI India Domestic Small Cap Index

Adani Enterprises, Adani Total Gas and Adani Transmission have entered MSCI India Domestic Index, according to a release by the index provider. SBI Cards and Payment and Apollo Hospitals too have entered the leading index, which is being tracked widely by global investors.

Adani trios and SBI Cards have also been included in MSCI Global Standard Index along with Bharat Electronics and Cholamandalam Investments and Finance. The changes will take effect from May 27, MSCI said in a release.

The half-yearly review of MSCI India index saw exclusion of Zee Entertainment Enterprises, TVS Motor Co and Abbott India from the index and they have been included in the MSCI India Domestic Small Cap Index. Zee Entertainment has also been excluded from MSCI Global Standard Index.

Similarly, Adani Total and Apollo Hospitals have been migrated from MSCI India Domestic Small Cap index to MSCI India Domestic Index.

$1.5 billion inflows

Earlier, a report form Edelweiss Alternative Research indicated the rejig will see an inflow of $1.5 billion into these stocks.

In all, 34 stocks were included in the MSCI India Domestic Small Cap Index while five (Adani Total, Apollo Hospitals, Hemisphere Properties (demerged entity of Tata Communications), KRBL and Mishra Dhatu Nigam) have been excluded.

Small-Cap index inclusion

Among the inclusion were Alok Industries, Balaji Amines, Burger King, Canara Bank, CG Power, CAMS, EPL (Formerly Essel Packagings), Happiest Mind Tech, IRCTC, Indigo Paints, KPIT Tech, Intellect Design Arena, Max Healthcare, Nagarjuna Construction, Oracle Financial, Poly Medicure, Prism Johnson, Route Mobile, Sequent Scientific, Shriram City Union, SKF India, Solara Active Pharma, Sumitomo Chem, Sun TV Network, Supreme Industries, Supreme Petrochem, Trent, UTI Asset Management, Vardhman Textiles and VST Industries.

Stocks’ mixed reaction

However, the inclusion did not impact the share price. For instance, shares of Adani Enterprises and Adani Total slipped about per cent while Adani Transmission ended up over 0.5 per cent. SBI Card gained 0.4 per cent but BHELedged down 1.3 per cent and 1.3per cent respectively. Cholamandalam Investment, in fact, slumped 4.8 per cent at ₹524.

On the other hand, Zee Entertainment, which has been excluded from both MSCI Global Standard Index and MSCI Domestic India Index, has gained 3.34 per cent at ₹193.20 on the BSE.

Published on May 12, 2021

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