Bank of Baroda and CG Power are expected to be included in the MSCI global standard index and the announcement is likely to be made on February 10, 2023. The re-balancing could be from February 28, according to a report by Nuvama Alternative & Quantitative Research.
It added that Biocon could get excluded from the index.
“We were pushing Power Finance (POWF) as a probable inclusion contender since Rs 140 odd levels. However, stock after touching 162 has recently cooled off and is trading at Rs 150 levels. Thus, as per my calculations, if the cut-off date has already been selected, the stock has missed a chance for Feb review. POWF can be kept on long side from May 2023 review inclusion,” said Nuvama, according to a livemint report.
The Index provider can select any single day for the MSCI cut-off date from the last 10 working days of January. As observed by Nuvama in the last 10 reviews, MSCI has always selected the day from initial four working days (from the last ten days). Thus, the brokerage believes the market cap cut-off date is already done or be maximum by Monday, January 23, 2023.
In order to be eligible for inclusion in a MSCI index, a leading provider of research-based indexes and analytics, a security’s Foreign Inclusion Factor (FIF) must reach a certain threshold. The FIF of a security is defined as the proportion of shares outstanding that is available for purchase in the public equity markets by international investors.
Bank of Baroda’s shares have surged more than 94 per cent in a year’s period, whereas that of CG Power and Industrial Solutions Ltd have gained over 80 per cent during the period on the BSE. On the other hand, pharma major Biocon’s shares have declined about 34 per cent in a year.
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