Adani stocks dodge drop in Sensex, gain ahead of MSCI rebalancing

Adani Total Gas and Adani Transmission rose 1.5% and 2.9%, while Adani Enterprises ended little changed; Sensex dropped 0.7%

Adani group stocks bucked the fall in the market on Tuesday. Adani Total Gas and Adani Transmission rose 1.5 per cent and 2.9 per cent, respectively, while Adani Enterprises ended little changed. The Sensex, in comparison, dropped 0.7 per cent.

The gain in Adani group shares comes ahead of the MSCI semi-annual review slated for Wednesday. Most analysts are pegging the three Adani group stocks to get added to the index.

“Our high conviction inclusion names are: Adani Enterprise (approximate inflows of $245 million), Adani Total Gas ($225 million), Adani Transmission ($220 million) while our medium to high conviction inclusion names are Cholamandalam Investment ($200 million) and SBI Cards ($150 million),” said Abhilash Pagaria, analyst at Edelweiss Alternative Research.

If all the five stocks are included then India can see net inflow of close to $1 billion, he added.

Global index provider MSCI has introduced ‘extreme price increase’ as a new criterion for deciding the stocks to be included in its indices. Earlier, there were fears that the Adani group stocks could be impacted by this as they have seen a huge jump. However, analysts say the new methodology is unlikely to impact any of the domestic companies. The announcement on inclusion and exclusion of stocks on Wednesday by MSCI would become effective from May 27.