As part of its semi-annual review, which will be unveiled on May 11, 2023, global index services provider MSCI (Morgan Stanley Capital International) may include two possible India equities in its Standard Index.
According to brokerage Emkay, both Ashok Leyland and Hindustan Aeronautics meet the size and liquidity requirements through 23 March 2023, and it doesn’t currently anticipate any exclusions.
“We have assessed the probable changes to the MSCI India standard Index assuming price cut-off date of 23rd Mar 2022,” it said.
All changes to its widely followed stock indexes will be implemented on 1 June, 2023.
HAL, Ashok Leyland shares
HAL free-float market capitalisation could increase by 3.5 per cent (from 20.5k cr to 23.8k cr) after its OFS in March. If the price stays above 2370-2400 in next 2 months, there is a high probability of its inclusion in the MSCI India Index, Emkay said.
The stock has price support at 2347 (200-DEMA) and 2290 (February 23 low). The expected inflow on inclusion would be $102mn (3.9 times ADV).
Ashok Leyland has been trading in a broad range from 135-150 since last 6 months. At the lower level of this range, the stock qualifies marginally on the size criteria.
Therefore, until the Auto stock remains at these levels, the brokerage said that it would remain a low probability inclusion candidate. The expected inflow on inclusion would be $104mn (5 times ADV).
Shares of HAL rose nearly 4% to ₹2,593.10 apiece on the NSE in Friday’s trade. Meanwhile, the stock of Ashok Leyland Ltd surged 0.91 per cent to ₹138.55 apiece.
The $5 billion iShares MSCI India Exchange-Traded Fund, the largest US-listed India-focused ETF, rose as much as 0.49 per cent to ₹38.72 on 23 March, but declined 7.59 per cent year to date.
The views and recommendations made above are those of individual analysts or broking companies, and not of sharebaz.