Two Adani Group Stocks To Exit MSCI Global Index Today

Two Adani Group companies, Adani Total Gas and Adani Transmission, will be excluded from the Global Standard Index at the close of trading on Wednesday 31 May. The exclusion is being done as a part of MSCI's quarterly comprehensive index review, and follows changes in MSCI's calculation on the amount of shares considered freely tradable in the public market for the two firms.

According to domestic brokerage house Nuvama Institutional Equities, the removal of two Adani units from the MSCI Global Standard Index will likely result in outflows of $189 million for Adani Transmission and $167 million for Adani Total Gas.

Due to changes in MSCI, Nuvama anticipates India to get a net passive inflow of $500 million. Adani Transmission is anticipated to incur outflows of $189 million. On the other hand, Adani Total Gas reported a $167 million outflow. The combined outflows for the two stocks are anticipated to be $356 million.

According to the report, 18 million shares of each of the two Adani Group equities would be sold off. The study also stated that the stocks have weights of 0.34 and 0.31, respectively.

Stocks like Max Healthcare Institute, Hindustan Aeronautics (HAL), and Sona BLW Precisions Forgings are anticipated to be included in the MSCI rejig. According to Nuvama's most recent projections, HAL ($196 million) and Sona BLW Precision ($171 million) would likely have strong inflows while Max Healthcare may witness inflows of $312 million.