2 days ago

MSCI Rebalancing Set to Drive Volatility in Indian Stocks Today

MSCI is changing which Indian companies are included in one of its important stock indexes.

When this happens, large investors may need to buy or sell shares to match the new list.

This could cause some stock prices to move sharply even without new company news.

Laurus Labs, Lenskart, Adani Energy Solutions and Groww are expected to be added.

Balkrishna Industries, SBI Cards and Astral are expected to be removed.

Reliance Industries may see a large outflow because its publicly tradable share portion has fallen.

India’s share of the main index will increase slightly.

The MSCI Small Cap Index will also have several additions and removals.

Key facts

India MSCI weight: Expected to rise to 11.9% from 11.8%.
Main index constituents: Expected to increase to 166 from 165.
Largest projected inflow: Laurus Labs: $598 million.
Other projected inclusions: Lenskart: $352 million; Adani Energy Solutions: $310 million; Groww: $256 million.
Projected exclusions: Balkrishna Industries: $169 million outflow; SBI Cards: $143 million outflow; Astral: $138 million outflow.
Reliance Industries impact: A projected $523 million outflow, linked to a reduction in free float after an increase in promoter stake.
Small Cap Index: India’s weight is expected to rise to 22.2% from 22.0%; constituents will change from 461 to 455.

businesstoday.in · 2 days ago