NMDC, Union Bank, BHEL in red despite MSCI inclusion amid rush to book profit

Shares of NMDC, Union Bank, and BHEL declined in the morning trade on February 13 along with all public sector stocks, despite entering the MSCI Global Standard Index.

Over the past three months, these stocks rallied, making them eligible for MSCI inclusion. However, after MSCI announced the final results, these stocks have seen profit-booking, mainly due to subdued sentiment in overall markets in the last three sessions. The BSE PSU index has wiped off Rs 6.4 lakh crore in market capitalisation in the last three days.

At 10:15am, NMDC shares were trading at Rs 227, down 1 percent from the previous close on the NSE. Meanwhile, Union Bank and BHEL were down over 2 percent and 1.8 percent. The other two inclusions, Punjab National Bank and GMR Airports Infrastructure, were trading in the green, up 2 percent and 4 percent.

Follow our live blog for all the market action

In the last three months, shares of the newly added companies have gained in the range of 25 percent to 57 percent, Moneycontrol data showed.
MSCI changes

Apart from the standard index, MSCI has also revealed 27 additions and six deletions from the Small Cap index. The additions include Honasa Consumer, IIFL Securities, IREDA, KPI Global and SBFC Finance among others. Honasa Consumer or Mamaearth shares were down over 4 percent, while IREDA plunged 5 percent.

The Indian additions to the Small Cap Index include Balmer Lawrie, Banco Products, Cello World, Cyient DLM, DB Realty, Dhanuka Agri, and Ethos.

According to insights from Nuvama Alternative & Quantitative Research, India could witness a substantial surge in Foreign Institutional Investor (FII) passive inflows, projected to surpass $1.2 billion on February 29 when the adjustments are made by funds, ETFs that benchmark against MSCI indices.

“India holds approximately 17.9 percent representation in the MSCI EM Index. Following the February rejig, the weight will increase to over 18.2 percent, marking a historic high,” said Nuvama Research.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.