MSCI has today (August 11, 2023) released the list of stocks as part of its August Global Standard Index review, set to take effect on September 1, 2023. Of particular note, MSCI has also addressed the ongoing uncertainty surrounding the free float of Adani Group and its associated securities within the MSCI ACWI IMI Indexes.
MSCI has chosen to maintain the status quo on Adani Group stocks. It says, “In light of continued uncertainty with the free float of securities of this group and associated securities within the MSCI ACWI IMI Indexes, it will not implement any changes in the Foreign Inclusion Factor (FIF) or Number of Shares (NOS) for the related securities as part of the August 2023 Index Review and until otherwise announced.”
Further to that, this Global index aggregator says, “It will review the treatment of non-neutral corporate events for the affected securities on a case-by-case basis and potentially defer their implementation. And, for the avoidance of doubt, MSCI will continue implementing any neutral corporate events including ones requiring application of a Price Adjustment Factor (PAF).”
Earlier today, MSCI in its quarterly Index review has announced addition of eight stocks to its Global Standard Index while one is removed.
As of August 31, HDFC Asset Management, IDFC First Bank, Ashok Leyland, Astral, Cummins India Kirloskar, REC, Power Finance Corporation, and Supreme Industries will join the ranks of this index while the Adani Group company, ACC will be excluded. The Global Smallcap index has also seen changes, with the addition of 40 stocks and the removal of 11.
Notably, within the Asia Pacific region, India stands out with the highest number of new additions to the Global Small Cap Index. This includes names such as ACC, Anand Rathi Wealth, Dreamfolks Services, Five Star Business Finance, Glenmark Lifesciences, ICRA, Kalyan Jewellers, Marksans Pharma, Mrs. Bector’s Food, Neuland Laboratories, and Patel Engineering. These additions, set to come into effect on August 31, mark a dynamic shift in the global investment landscape.
According to Nuvama Alternative and Quantitative Research, PFC and HDFC AMC are projected to receive significant investments, with estimations amounting to $203 million and $153 million respectively. Simultaneously, IDFC First Bank is poised to attract inflows of $204 million.
Further down the line, Ashok Leyland, Cummins India, and Astral are predicted to experience substantial capital inflows of $196 million, $173 million, and $170 million respectively, according to Nuvama's insightful calculations.
First Published: Aug 11, 2023 8:48 AM IST
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