MSCI sets aside Piramal Pharma's exclusion from global standard index

Global index provider Morgan Stanley Capital International (MSCI) has set aside the excision of Piramal Pharma Solutions (Piramal Pharma) from its Global Standard Index after the stock hit the lower trading limit.

Shares of Piramal Pharma dropped 5 per cent to close at Rs 163.3 on the BSE. The stock has hit a lower trading limit in three of the five trading sessions since its listing.

The removal from the MSCI index is likely to result in selling by passive trackers to the tune of $50 million, according to Nuvama Alternative & Quant Research.

“Since Piramal Pharma is trading at lower circuit, MSCI index has yet again deferred its exclusion from the MSCI Global Standard Index by two trading days. Earlier, Piramal Pharma was going to be excluded on October 20 and then on October 27,” said a note by Nuvama.

The company was listed separately on October 19, following its demerger from Piramal Enterprises.