MSCI Index Rejig: Max Healthcare, Sona BLW share price rally 5% on MSCI index inclusion

Shares of Max Healthcare Institute and Sona BLW Precision Forgings rallied around 5% in the early Friday trade after Morgan Stanley Capital International (MSCI) added the stocks to its India Standard Index. 

Max Healthcare rallied 6% to hit an intraday high of ₹513.15, while Sona BLW Precision gained 4.68% to hit an intraday high of ₹573 apiece on the BSE.

In its May 2023 rejig, MSCI also included Hindustan Aeronautics Ltd (HAL) to the India Standard Index. The shares of HAL traded a percent lower.

Read here: MSCI Index Rejig: HAL, Max Health, Sona BLW included; Indus Towers, two Adani Group stocks excluded

As per Nuvama Alternative & Quantitative Research, inclusion of Max Healthcare Institute in MSCI Index will lead an inflow of $295 million and that for Sona BLW Precision and Hindustan Aeronautics Ltd would be $175 million and $195 million, respectively.

Inclusion in the MSCI India Standard Index is seen as positive as it is tracked by many index funds and exchange-traded funds (ETFs) as a benchmark.

Shares of Max Healthcare have rallied over 41% in the last one year, while that of Sona BLW Precision Forgings fell over 4% during the same period. However, Sona BLW Precision shares are up nearly 30% YTD.

On the other hand, Hindustan Aeronautics share price has seen a massive rally over the past. It has surged by over 95% in one year and by a staggering 500% in three years.

Meanwhile, MSCI will also increase weight of certain stocks in MSCI Index, including Kotak Mahindra Bank, ONGC, Maruti Suzuki, NTPC, Mahindra & Mahindra, Yes Bank, Siemens, Interglobe Aviation, Ultratech Cement, and Zomato, among others.

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