MSCI review: HAL, Ashok Leyland to be added to India Standard Index; shares rise
1 min read 24 Mar 2023, 11:50 AM ISTBoth Ashok Leyland and Hindustan Aeronautics qualify on size and liquidity criteria till 23 March, 2023, brokerage Emkay said in a note
PremiumGlobal 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.
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