Skip to player
Skip to main content
Skip to footer
Search
Connect
Watch fullscreen
Like
Comments
Bookmark
Share
Add to Playlist
Report
MSCI November Rejig: Key Stocks To Watch
NDTV Profit
Follow
11/15/2023
#MSCI adds nine Indian stocks to its Emerging Markets Index in its November review.
#IIFLSecurities' Sriram Velayudhan shares the impact of this rejig. #BQLive #BQStocks
Category
🗞
News
Transcript
Display full video transcript
00:00
Hello and welcome to BK Primer.
00:01
Very good morning to all the viewers.
00:03
I am Hiral Dadia.
00:04
MSCI has gone ahead and now put out a list of their November review.
00:09
Let's understand what has changed for the Indian stocks and the Indian markets.
00:13
Specifically, Suzlon Energy, IndusInd Bank, Paytm, these are a few of the names amongst
00:18
the nine inclusions that we are seeing.
00:21
And what is interesting is that there have been no exclusions or deletions.
00:26
Let's welcome in our guest, Shriram Velayudhan, Senior Vice President, Alternative Research
00:31
at IFL Securities to understand more as to what it would mean from an overall inflow
00:36
perspective for the Indian markets and going ahead.
00:39
Shriram, good morning and welcome to the show.
00:42
Hi, good morning.
00:43
So, Indus provider, MSCI announced the changes for the November review today early morning
00:52
Indian Standard Time.
00:53
So, in terms of the changes in the MSCI India Standard Index, which is the main index, largely
01:01
the changes have been in line with what IFL Alternative Research had anticipated.
01:08
So, in terms of high impact addition, we have Tata Motors GVR, which we expect to see to
01:18
be close to the tune of $145 million, which is 13 days average daily value traded.
01:26
The other impact additions are APL Apollo and Loda, macro tech developers.
01:32
So, these both means again we anticipate a really impact of between 10 to 12 days.
01:39
While APL Apollo should see inflows of $200 million, Loda, our estimate is, estimate of
01:46
the inflows $145 million.
01:48
Other additions to the MSCI India Standard Index are Tata Communications, Purchase Time,
01:55
Investing Bank, Polycast, APM and Suzlon Energy.
01:58
Suzlon Energy is a high profile addition.
02:01
In fact, it is a migration from the MSCI India Small Cap Index to the Standard Index.
02:09
We expect inflows of $240 million in Suzlon Energy on 30 November.
02:15
So, all these changes will take place up and over on 30 November.
02:21
So, this rebalance is a net inflow, will be a net inflow event of roughly $1.2 to $1.25
02:30
billion on 30 November.
02:32
Right.
02:33
So, Sriram, what you're saying is basically with the inclusion or the increase that we've
02:37
seen in the stock weightage will lead to inflows from passive funds that could be in that range
02:42
of $1.2 to $1.5 billion, right?
02:46
Now, taking this into consideration…
02:48
So, I would just like to correct, Indra, we would just like to correct the way it works
02:52
is not necessarily these additions will start up, will attribute for the inflows that we
03:02
will see in India.
03:03
We also will have to, like you know, we will have to assess what the impact is for the
03:09
other regions.
03:10
So, let's say the nine additions which are taking place in India in terms of float market
03:16
capitalization and also there are few greater names like Vedanta, Colgate, Hindustan Aeromatics,
03:21
Zomato, PSP and all.
03:23
So, all these, what it means is $1.2 to $1.25 billion, the additions which are taking, the
03:30
additions and the greater which are taking place in India is on the higher side when
03:34
we compare with the other emerging markets.
03:37
Got it.
03:38
Now, with this taking into consideration, any surprises that have come at your end because
03:44
clearly Suzlon is an interesting one that has been added as well, yes?
03:48
There was a lot of expectation of Suzlon being included.
03:52
What's your view?
03:53
Because from here on, you know, there's a probability where Suzlon could actually be
03:59
a contender for shifting to the mid-cap category from the small cap category as well when we
04:04
see the Amphi rejig happening with regards to January.
04:08
Apart from that, clearly Suzlon that has become a high conviction November entrant already
04:15
and you have the FTSE rejig that is expected as well.
04:18
How does this entire stack up for a Suzlon?
04:21
So, Suzlon was very much there in our list of expectations.
04:28
We have been, so we consistently keep a track of the additions and likely divisions that
04:38
take place in the Amphi and the standard interventions.
04:40
This is one of the key indices for India.
04:42
So, in terms of Suzlon, it was very much there in our list of expectations.
04:50
So, that has played out.
04:53
There was an element of uncertainty as well in few pockets of the market like may Suzlon
05:00
may get added or not.
05:03
So, hence, what we are seeing today is like you know the prepositional, the last-click
05:09
prepositional, who are at risk circumspect about Suzlon whether it will get added or
05:16
not.
05:17
That element of stop is getting witnessed in the prices today.
05:22
So, in terms of FTSE, I am not expecting any changes with respect to FTSE.
05:33
Right.
05:34
So, Sriram, clearly, you know, if you have to see the free float and the promoter holding,
05:44
any names that you think have come in as a surprise, number one, and two, anything that's
05:50
out.
05:52
Right.
05:54
So, in terms of Suzlon, I am not expecting anything specific with respect to the FTSE
06:03
indices.
06:04
And again, for the ancillary classification part, this is something like you know, it's
06:10
for the active fund managers to decide whether they would want to take an exposure in Suzlon
06:14
or not.
06:15
Okay.
06:16
Sriram, reiterate in terms of any of the names that have come in as a surprise or a
06:23
name which should have been added has not been added if you have to take the free float
06:26
and the promoter holding into consideration.
06:29
This is largely in line with what we had expected.
06:35
I think Sundaram Finance was one name which was there on the radar, but I think it wasn't
06:41
in the liquidity criteria, but we will roll over our expectations with respect to Sundaram
06:48
Finance for the Fed 2024.
06:51
Okay.
06:52
And overall, any expectations from an, I mean, and specifically with IndusInd Bank, how are
07:00
you looking at it?
07:01
If you, I mean, because that was something that was on the cards, but from a performance
07:07
perspective, a good inclusion?
07:09
So, in terms, with respect to private banks, what we are seeing is SPIs have been gradually
07:23
trimming their positions in private banks because this is one of the sectors that is
07:32
overrun by the SPIs.
07:35
Same goes with IndusInd Bank as well.
07:37
I think because of this reason, the inclusion event, the anticipated inclusion of IndusInd
07:46
Bank in the India Standard Index was not getting priced in.
07:51
But like, you know, now that the actual announcement is out, we expect the stock to outperform
07:58
Bank 50 and IndusInd Bank in the run-up to the inclusion event.
08:02
Right.
08:03
And very lastly on FTSE, we spoke about Suzlon, but overall, what's your expectation from
08:09
a FTSE reject perspective?
08:11
So, with respect to, so FTSE will be announcing the changes for the December quarterly review
08:21
on Friday.
08:22
So, our list of expectations include inclusion of Mindfarm, Parma in the All World and All
08:30
Cap Index.
08:31
This is an expectation.
08:32
So, in case, in an event, if our expectation stands out, so mankind should see inclusion
08:42
of $30 million across All Cap and All World Index.
08:47
Right.
08:48
So, I think these are going to be interesting names to watch out for.
08:52
Thank you so much, Sridhar, for joining us on the show and sharing the views so clearly.
08:56
Pacified flows is what is on the cards.
08:59
No deletions is interesting.
09:01
You know, a high conviction inclusion is a Suzlon.
09:05
IDFC is also a good one to watch out for as well as a Tata Motors DBR.
09:09
And next in line will be the FTSE review that all will be eyeing.
09:12
That's all that we have on this session.
09:14
Thanks for watching and lots more lined up on the other side.
09:16
Please stay tuned to BQ Prime.
09:17
[MUSIC]
09:26
[BLANK_AUDIO]
Recommended
1:53
|
Up next
Here's how Indian stocks will be impacted by MSCI Global Standard Index rejig
CNBC-TV18
11/25/2019
1:00:00
India Market Close | Nifty, Sensex Extend Gains | NDTV Profit
NDTV Profit
2/16/2024
1:11:24
Sensex, Nifty Recoup Losses | India Market Close | NDTV Profit
NDTV Profit
3/6/2024
2:35
Benchmark Indices Close Higher | NDTV Profit
NDTV Profit
3/18/2024
1:02:03
India Market Close | Nifty Sensex Record High | NDTV Profit
NDTV Profit
9/26/2024
57:42
Key Highlights From Day 1 Of JP Morgan India Investor Summit | NDTV Profit
NDTV Profit
9/23/2024
1:34
MORNING CALL: 6/12/23
The Edge TV
12/5/2023
0:59
Market expert Kunal Saraogi spoke about India overtaking China as an emerging global market
IANS INDIA
9/7/2024
2:40
Dr Manoranjan Sharma on the possibility of Sensex reaching 1,00,000 this year
IANS INDIA
9/24/2024
6:38
EVENING 5: Jamie Ling is new AMMB group CEO
The Edge TV
11/6/2023
7:58
EVENING 5: MR DIY brothers among new Forbes billionaires
The Edge TV
4/7/2021
1:06:15
India Market Close | NDTV Profit
NDTV Profit
9/12/2024
1:28
MORNING CALL:7/12/23
The Edge TV
12/6/2023
2:09
MORNING CALL: 12/12/23
The Edge TV
12/11/2023
5:59
EVENING 5: MAHB group CEO to step down
The Edge TV
10/7/2023
5:40
EVENING 5: MSM Malaysia's CFO on garden leave
The Edge TV
11/3/2023
1:58
MORNING CALL: 27/11/23
The Edge TV
11/26/2023
2:53
Indian stock markets fell sharply.. Investors lost Rs. 13 lakh crore.. What is the reason?
Oneindia Tamil
3/13/2024
1:33
MORNING CALL:18/12/23
The Edge TV
12/17/2023
7:01
EVENING 5: DXN closes below listing price, worst-performing IPO listing so far
The Edge TV
5/19/2023
3:40
2025 Stock Market Outlook: ये 10 Stocks कराएंगे आपको ज़बरदस्त कमाई, Experts ने दिए टारगेट्स
Goodreturns
12/19/2024
1:52
MORNING CALL:4/12/23
The Edge TV
12/3/2023
5:35
Expect monthly SIP inflow to touch Rs 9,000 crore soon, says Sundaram MF’s Sunil Subramaniam
CNBC-TV18
10/10/2019
2:01
MORNING CALL:22/5/23
The Edge TV
5/21/2023
1:06:09
Sensex, Nifty Extend Decline | India Market Close | NDTV Profit
NDTV Profit
1/18/2024