Home/ Markets / Stock Markets/  MSCI review: HAL, Ashok Leyland to be added to India Standard Index; shares rise

Global index services provider MSCI (Morgan Stanley Capital International) may add two potential India stocks in its Standard Index, as part of its semi-annual review, which will be announced on 11 May, 2023.


Both Ashok Leyland and Hindustan Aeronautics qualify on size and liquidity criteria till 23 March, 2023, brokerage Emkay said in a note, adding it doesn't expect any exclusions at this point of time.


"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 Mint.

Meghna Sen
Business journalist tracking markets, companies, economy and crypto for Livemint. She has 6 years of experience with online and print publications. Email: meghnasen08@gmail.com
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Updated: 24 Mar 2023, 11:50 AM IST
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