Three Adani Group firms join MSCI Index

MSCI Inc has added six Indian stocks, including three Adani Group companies, to the global standard index as part of its semi-annual index review.

The index aggregator has removed Zee Entertainment Enterprises from the global standard index. MSCI has added 33 stocks to its global small-cap index, while removing five.

These changes will be effective from May 28, MSCI said.

The changes in the global standard index are in line with market expectations.

The Street had anticipated the entry of Adani Enterprises, Adani Transmission, Adani Total Gas, and Cholamandalam Investment and Finance Co into the global standard index.

This anticipation drove stocks of Adani Group companies by over 21-35% in the past 30 days.

The inclusion of these stocks are expected to result in foreign inflows of over $800 mln, they said.

The exclusion of Zee Entertainment Enterprises from the MSCI global standard index could result in outflows of about $150 mln, according to dealers.

Meanwhile, recently listed companies such as Burger King India, Happiest Minds Technologies, Route Mobile, and Indigo Paints made their entry into the MSCI's small-cap index.

At 1321 IST, shares of Adani Total Gas and Adani Transmission were 1.5% and 0.9% higher at 1,313.95 rupees and 1,208.75 rupees, respectively, on the National Stock Exchange.

Shares of Zee Entertainment Enterprises were 3.7% higher at 183.75 rupees, while those of Cholamandalam Investment and Finance Co were 3.9% lower at 529.05 rupees on the NSE.

Meanwhile, recently listed companies such as Burger King India, Happiest Minds Technologies, Route Mobile, and Indigo Paints made their entry into the MSCI's small-cap index