Adani Transmission, Adani Total shares tank 5% on ouster from MSCI Global Standard Index

Adani Transmission and Adani Total Gas stocks tanked on Friday following their ouster from the MSCI Global Standard Index. While Adani Transmission shares were trading at Rs 871.40 on the NSE in the opening trade — down by Rs 45.85 or 5% from the Thursday closing price, Adani Total Gas shares were trading at Rs 812.30 — falling Rs 42.75 or 5%.

The two exits come in the wake of changes in the MSCI Global Standard Index for the May 2023 review. The adjustments will take place on May 31, 2023.

The exit of Adani Transmission and Adani Total Gas from the MSCI Global Standard Index is expected to trigger outflows of $201 million in case of Adani Transmission and $186 million in case of Adani Total Gas according to a Nuvama Alternative & Quantitative Research report.

The exits are expected to trigger outflows of $201 million in case Adani Transmission and $186 million in case of Adani Total Gas, revealed the report.

Meanwhile, 18 million shares each of both the Adani Group stocks will be reportedly offloaded from the index. The stocks carry weights of 0.34 and 0.31, respectively, according to the report.

On the other hand, Zomato will see an addition to its weight in the index, triggering inflows of $59 million, and 77 million shares will be added. The weight will go up by 10 bps taking it to 0.3. The average volume is expected to go up by 0.9 times.

Zomato shares gained on Friday, maintaining their last session’s lead.

The rejig will see inclusion of stocks like Max Healthcare Institute Limited, Hindustan Aeronautics Limited (HAL) and Sona BLW Precisions Forgings Limited while exclusion of Indus Towers Limited shares.

Other stocks that will see their weights in the MSCI Global Standard Index go up include Maruti Suzuki India Limited, Kotak Mahindra Bank Limited, Interglobe Aviation Limited, Samvardhana Motherson International Limited, Cipla and NTPC among others.

While the weights of Reliance Industries Limited, Infosys Limited and ICICI Bank Limited will come down.

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