MSCI Financial News

By Julie Zhu

MUMBAI : Indian equities rallied on Wednesday tracking gains in global stocks, as lower-than-expected US inflation raised optimism about the end of the rate hike cycle. Derivative short covering by foreign portfolio investors (FPIs) also helped. The National Stock Exchange’s Nifty 50 gained 1.19% to close at 19,675.45, while the BSE’s 30-stock Sensex rose 1.14% to close at 65,675.93.

MUMBAI : Global index provider MSCI has included nine Indian stocks in its MSCI Standard Index in the latest round of rebalancing, which will take India’s representation in the emerging market (EM) index to the highest-ever count of 131 stocks. The rebalancing, which will lead to minor cuts in the weights of some big names, could result in India attracting passive inflows of $1.5 billion after the changes take effect on 30 November.

By Koh Gui Qing and Danilo Masoni

IndusInd Bank Ltd. and wind-turbine maker Suzlon Energy Ltd., will be added to MSCI’s global standard gauge on November 30. Post changes, India will have 131 companies in the MSCI Emerging Markets Index, and the nation’s weight will reach an all-time high of 16.3 per cent, analyst Abhilash Pagaria wrote in a note.

In the paper, the authors said the results «raised concerns about the credibility of ESG ratings and underscores the need to understand the incentives that shape the production of ESG ratings».

Multibagger stock: Sigachi Industries shares are one of those stocks that might delivere multibagger return in YTD. This pharma stock has surged to the tune of 96 per cent in 2023 and looking all set to double positional investors' money in YTD. However, before it could double shareholders' money, it has climbed to a new 52-week high of ₹55.85 per share levels on NSE.

Stock market today: Shares of ASK Automotive Limited listed on BSE and NSE in special pre-open session at around 7.5 per cent premium during Wednesday deals. However, the auto stock didn't end after positive listing. ASK Automotive share price went up further and went on to hit intraday high of ₹311.75 per share on BSE and ₹312 apiece on NSE respectively.

Sriram Velayudhan, Vice-President, IIFL Securities, says the Standard Index will see nine additions, the highest of them in terms of impact being Tata Motors DVR, which we are expecting in close to the tune of $145-$150 million which is a big ADV of almost 13 days, followed by Macrotech and APL Apollo. These are high inflow additions in terms of ADV to the tune of 10 to 11 days. No stocks have been deleted from the Standard Index and a lot of interesting names have been added. What is your view? MSCI made the announcement relating to the November review early Wednesday morning India Standard Time. As you rightly pointed out. So, there are not any deletions for the forthcoming review. This purely works on the basis of the methodology that MSCI has put out. We are not seeing any deletions in this review. In terms of addition, the Standard Index will see nine additions, the highest of them in terms of impact being Tata Motors DVR, which we are expecting in close to the tune of $145-$150 million which is a big ADV of almost 13 days, followed by Macrotech and APL Apollo. These again are high inflow additions in terms of ADV to the tune of almost 10 to 11 days. The other closely followed addition is IndusInd Bank wherein we have been following the foreign room for the last couple of quarters.

UBS Group AG. Stocks in China have currently priced in “lots of negatives,” making them poised for a sharp rebound when catalysts arrive, said Sunil Tirumalai, UBS’ global emerging market strategist. Meanwhile, earnings-based valuations for Indian shares are already at “fairly extreme levels.” Additional stimulus measures from Beijing and improving geopolitical relations can provide “positive sustained market reaction” for China, he said in an interview last week.

IndusInd Bank, One 97 Communications, Tata Motors ‘A’ (Tata Motors DVR) and Suzlon Energy shares are among nine stocks that have been included in the MSCI Global Standard Index. As per the latest announcement by the global index provider, the other stocks included in MSCI India Index are APL Apollo Tubes, Macrotech Developers, Persistent Systems, Polycab India and Tata Communications.

US Federal Reserve will not hike interest rates further. Indian markets were shut for a holiday on November 14. On Monday, the domestic benchmark equity indices ended half a percent lower amid mixed global cues.

CIE Automotive India: Buy at ₹485.20, target ₹525, stop loss ₹470;2] HBL Power: Buy at ₹324.85, target ₹350, stop loss ₹315; and3] BEL: Buy at ₹143.40, target ₹155, stop loss ₹137. (Read More)Mohit Burman, Member, Burman Family and Chairman, Dabur India, is unfazed by the Religare Enterprises Ltd board's resistance to his family's open offer, after initially welcoming it. He says that acquiring Religare will add a crucial piece to the Burman family's growing bouquet of financial products and that the company needs a promoter to re-enter the lending business.In a lengthy interview conducted over two days, Burman stopped short of commending Religare chairperson Rashmi Saluja for the company's recovery while giving "full marks" to the management team for the turnaround.

IndusInd/Suzlon/Paytm/Persistent Systems: MSCI is set to adjust its MSCI Standard Index, drawing attention from analysts who are closely monitoring potential inclusions such as IndusInd Bank, Suzlon Energy, Persistent Systems, and One97 Communications. Nuvama Alternative & Quantitative Research predicts significant inflows into these stocks, estimating $290 million for IndusInd Bank, $264 million for Suzlon Energy, $258 million for Persistent Systems, and $163 million for One97 Communications, the parent company of Paytm.

Buy or sell stocks for today: Witnessing sell off in late hours, Indian stock market ended close to its intraday low on Monday. Nifty 50 index finished 82 points lower at 19,443 levels, BSE Sensex gained 325 points and closed at 64,933 mark whereas Bank Nifty index added 105 points and ended at 43,891 levels. Volumes on the NSE were at the lower end of the range.

By Ankur Banerjee

IndusInd Bank, Suzlon Energy, Persistent Systems, APL Apollo, and One97 Communications, parent company of Paytm, to the closely watched Morgan Stanley Capital International (MSCI)Global Standard Index, which will be rejigged on November 15, highlighted brokerage Nuvama Alternative & Quantitative Research in its report. As per the brokerage report, with IndusInd Bank's debut, the stock will see $290 million in inflows.

MSCI's broadest index of Asia-Pacific shares outside Japan was 0.49% higher, while Tokyo's Nikkei gained 0.36%. Australia's S&P/ASX 200 index was up 0.61%. The Japanese yen was at 151.71 per dollar in Asian hours, having touched a one-year low of 151.92 on Monday.

By Suzanne McGee

Also Read: China's spending on green energy is causing a global glut The Wall Street brokerage expects India's real economic growth to be 6.5% in 2023 and 6.3% in 2024 - the highest among large economies in the region, but slightly below the Indian central bank's target of 6.5% for fiscal 2024. The benchmark Nifty 50 jumped about 31% between March 2021 and October 2023, a period during which domestic investors remained net buyers each month, helping tide over sustained sales by foreign investors.

By Libby George and Bansari Mayur Kamdar