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Business News/ Markets / Stock Markets/  Suzlon share price falls over 3% amid MSCI Global Standard Index rebalancing
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Suzlon share price falls over 3% amid MSCI Global Standard Index rebalancing

Suzlon stock opened at ₹39.70 per share in the early morning trading session today, against previous close at ₹40.75 apiece.

Suzlon Energy Ltd. share price falls over 3.31% on Friday, December 1, 2023. Photographer: Santosh Verma/Bloomberg News.Premium
Suzlon Energy Ltd. share price falls over 3.31% on Friday, December 1, 2023. Photographer: Santosh Verma/Bloomberg News.

Wind turbine manufacturer Suzlon Energy share price plunged over by 3.3% to 39.40 per share on Friday, December 1. Suzlon stock opened at 39.70 per share in the early morning trading session today, against previous close at 40.75 apiece.

The decline in the share price ensued following the revelation that Suzlon's stock would be incorporated into the MSCI Global Standard Index, alongside eight other stocks.

The incorporation is anticipated to attract $286 million in passive inflows to the stock. However, Nuvama Institutional Equities observed that the majority of the price impact has already been factored in. Suzlon shares also witnessed a fall by over 2% on Wednesday.

Following the rebalancing in the Standard Index, specifically the Emerging Market Index, India's stock allocation is poised to increase to 131, with its weight inching closer to 16.3 percent.

"India's representation in the EM index will reach an all-time high, marking a significant increase over the past three years, almost doubling its weight," Nuvama said in a note.

According to a CNBC-TV18 report, Suzlon Energy's promoters do not plan on increasing their stake in the company as of now.

Group Vice Chairman Girish Tanti said that as of now there are no imminent intentions to alter the company's holding structure. According to the shareholding pattern for the September quarter, Suzlon's promoters maintain a 13.29% stake in the company.

"We continue to endeavour to make sure that whatever possible we can do in that space, the efforts are always there to see what we can do in that space, but no immediate plans of any change in holding structure at this point in time," Tanti said.

Suzlon posted a 45% year-on-year jump in their net profits to 102 crore. The revenue of the company declined marginally to 1,417 crore in Q2FY24 from 1,430 crore during the same period last year. The numbers of Suzlon Energy remained positive despite an exceptional loss of 35 crore during the quarter ending September 2023.

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Published: 01 Dec 2023, 04:18 PM IST
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