As a part of MSCI's quarterly comprehensive index review, two Adani Group companies — Adani Transmission and Adani Total Gas — will be excluded from the Global Standard Index at the close of trading on Wednesday (May 31). The exclusion follows changes in MSCI's calculation on the amount of shares considered freely tradable in the public market for the two firms.

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The exit of two Adani units from the MSCI Global Standard Index will likely trigger outflows of $189 million in the case of Adani Transmission and $167 million in the case of Adani Total Gas, suggested domestic brokerage house Nuvama Institutional Equities.

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Nuvama expects India to see a net passive inflows of $500 million due to MSCI changes. Adani Transmission is expected to see $189 million in outflows. Adani Total Gas, on the other hand, is seen $167 million outflow. In total, the two stocks are expected to see $356 million in outflows.

Meanwhile, 18 million shares each of both Adani Group stocks will be offloaded, as per the report. The stocks carry weights of 0.34 and 0.31, respectively, the report added.

Adani Transmission shares ended at Rs 835.90 on the NSE on Monday, May 29, and were down by Rs 14.20 or 1.67 percent. Adani Total Gas shares settled at Rs 730, down Rs 30.70, or 4.04 percent.

The MSCI rejig is expected to see the inclusion of stocks like Max Healthcare Institute, Hindustan Aeronautics (HAL) and Sona BLW Precisions Forgings. While Max Healthcare may see $312 million in inflows, HAL ($196 million) and Sona BLW Precision ($171 million) will likely see solid inflows, as per Nuvama's latest estimates.

Indus Towers, whose shares were also excluded from MSCI indices, may see $84 million in outflows, Nuvama said.

Other counters such as Kotak Mahindra Bank, Maruti Suzuki India, ONGC, UltraTech Cement, InterGlobe Aviation, Zomato and NTPC saw increase in MSCI weightages. Among them, Kotak Mahindra Bank is expected to receive $800 million in flows, while the others are expected to see $50-100 million inflows.

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The weights of Reliance Industries, Infosys and ICICI Bank will come down. RIL ($151 million) and Infosys ($105 million) would be two stocks, which will see over $100 million in outlfows, due to weight reduction. ICICI Bank, HDFC, JSW Steel, TCS and Tech Mahindra will likely see more than $50 million in outflows.

(Edited by : Shoma Bhattacharjee)

First Published:May 29, 2023 5:36 PM IST