MSCI rebalancing on Monday: Adani Energy, Groww set for big inflows; RIL, Jio Financial may face outflows
MSCI’s latest rebalancing is set to drive heightened trading activity in several Indian stocks on Monday, with revised weights taking effect from September 1. The final 30 minutes of Monday’s session could see significant activity as investors adjust positions. According to Nuvama Alternative and Quantitative Research, the changes include index additions and exclusions, along with weight…
On Monday, MSCI's rebalancing changes will impact several Indian stocks, with Adani Energy, Groww, Laurus Labs, and Lenskart set to receive significant inflows. The remaining stocks, RIL, and Jio Financial, may face outflows.
Adani Energy Solutions is expected to see $310 million in inflows, followed by Groww at $256 million, Laurus Labs at $598 million, and Lenskart at $352 million. Together, these four stocks are anticipated to bring total inflows of $1.516 billion.
On the other hand, three stocks - Balkrishna Industries, SBI Cards, and Astral - will be excluded from the index, potentially leading to outflows of $169 million, $143 million, and $138 million, respectively. The combined outflows from these three stocks will amount to $450 million.
Additionally, MSCI is increasing the weights of seven stocks, which is expected to bring further inflows. Eternal is anticipated to receive $674 million, followed by Adani Enterprises at $202 million, Adani Ports at $77 million, JSW Energy at $34 million, Adani Power at $28 million, GMR Airports at $22 million, and Swiggy at $13 million. The total inflows from these weight increases are projected to be $1.050 billion.
Conversely, the weights of five stocks will be reduced, potentially resulting in outflows. Reliance Industries is expected to see the largest outflow at $523 million, followed by Jio Financial at $61 million, Indian Hotels at $32 million, AB Capital at $21 million, and Colgate at $16 million. The combined outflows from these five stocks are expected to be $653 million.
Market analysts suggest that the Nifty is currently trading below crucial moving averages, indicating a lack of a clear trend. The daily RSI and Stochastic indicators are also oscillating within a range, suggesting a period of consolidation. Therefore, the focus is now on the crucial support zone of 24,000–23,950, with a sustained move below 23,950 potentially triggering a correction towards 23,700 in the short term.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
