MSCI rejig impact: Adani Total Gas, Adani Transmission dip 5%; Max soars 6%

Among the new additions to the MSCI Small Cap index, KFIN Technologies, Syrma SGS Technology and Ujjivan Small Finance Bank have rallied up to 6 per cent.

Shares of companies that were reblanaced, added and deleted to the MSCI India indexes, including the Small Cap index, were in focus in trade on Friday.

Among the prominent stocks to be dropped by the global index provider Morgan Stanley Capital International (MSCI) - Adani Transmission and Adani Total Gas hit their respective 5 per cent lower limits at Rs 871 and Rs 812, respctively on the BSE. 

At 11:00 AM, Adani Transmission was down 3.5 per cent at Rs 885. Nearly 69,000 shares had been traded on the BSE till then. Adani Total Gas, on the other hand, remained locked at the 5 per cent lower limit on trades of around 3.66-lakh shares, with pending selling orders of another 6.5 lakh shares, data shows. Meanwhile, the S&P BSE Sensex had recouped from a low of 61,578, and was down 70-odd points at 61,835.

The deletion from the MSCI India index is likely to result in selling worth Rs 3,200 crore ($390 million) in these two counters by passive sellers. The changes to the index constituents will be effective as per the closing price on May 31, MSCI said in its release.

MSCI has said if these two Adani group stocks get locked in their lower trading limit for a cumulative 5 minutes on May 31, the deletion will take place at zero value. If not, the index provider will use the official closing price. READ MORE

Winners and losers

Further, reports suggested that Kotak Bank is likely to be the biggest beneficiary of the MSCI India Index rejig. The shares of private lender could see inflows up to $810 million. The stock, however, traded flat around at Rs 1,956 on the BSE on Friday.

Max Healthcare is the other major beneficiary, according to reports, which can see infows to the tune of $295 million as per Nuvama Research, soared 6 per cent to a high of Rs 513. Nearly 6.3-lakh shares were traded till late morning deals.

Among the Smallcap additions and deletions, shares of KFIN Technologies zoomed over 6 per cent. Syrma SGS Technology and Ujjivan Small Finance Bank were up over 4 per cent each. On the flip side, Dilip Buildon slipped almost 3 per cent.

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