MSCI rejig impact on Adani shares: Adani Transmission, Adani Total Gas hit lower circuit, fall 5% today

Adani Transmission and Adani Total Gas tanked 5% each, hitting their lower circuits as the MSCI rejig excluded them from the MSCI India Index.

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Reliance Industries, Bajaj Finance, Hindalco Industries, Bharat Petroleum Corp, JSW Steel saw their weightage reduced in the latest MSCI review.

Adani Transmission and Adani Total Gas share prices hit lower circuit of 5% today at Rs 871.40 and Rs 812.3, respectively, as index provider MSCI announced dropping of the embattled Adani group’s companies from the MSCI India Index in its quarterly review. Additionally, Indus Towers, which was also excluded from the index, fell 2.4%, touching an intraday low of Rs 147.85.

Max Healthcare Institute was added to the index; the firm’s shares soared 6%, making an intraday of Rs 513.25. Additionally, Sona BLW Precision Forgings was up 4.9%, with a day’s high of Rs 574 as it was added to the index too. However, despite its addition to the MSCI India Index, Hindustan Aeronautics fell 2.4% in trade.

MSCI weightage increased in these shares

15 companies saw weightage rise in the index. According to Nuvama Equities, Kotak Mahindra Bank’s change in weight might lead to an additional $810 million in inflows. However, the announcement had no discernible impact on the share price of the private lender, as it fell 0.3% in trade.

Maruti Suzuki’s weight addition will bring in inflows of $87 million; ONGC’s increase in weightage will lead to $74 million in inflows; Indigo and Zomato combined will bring $122 million in additional inflows. NTPC, Power Grid, Siemens, Mahindra & Mahindra, SBI cards, CIpla, TVS Motors, Yes Bank and Samvardhana Motherson saw a hike in their weightage.

MSCI weightage decreased in these shares

The prominent weight reductions are in Reliance Industries, leading to outflows of $155 million; Infosys with outflows of $155 million; ICICI Bank’s reduction would lead to outflows of $94 million; JSW Steel, HDFC and TCS’s reduction in weightage would lead to a combined outflow of $212 million.

Tata Consultancy, Hindalco, Tech Mahindra, Divi’s Lab, Dr reddy’s Lab, HUL, Shree Cement, Axis Bank, BPCL, Mphasis and Avenue Supermarts saw a decrease in their weightage. The MSCI will implement changes on May 31, 2023.

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First published on: 12-05-2023 at 12:45 IST