MSCI Rejig: Why Indian Stocks Saw Sharp Closing Swing ?

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Ashwini Sonnad |
MSCI Rejig: Why Indian Stocks Saw Sharp Closing Swing ?

MSCI’s latest index rejig triggered heavy buying and selling in Indian stocks on August 31, as global funds adjusted their portfolios before the changes took effect. The new Closing Auction Session (CAS) saw a massive ₹39,718 crore turnover, around 22% of NSE’s total cash-market turnover and nearly 42 times the previous session.

Laurus Labs, Lenskart, Adani Energy Solutions and Groww (Billionbrains Garage Ventures) were added to the MSCI index, while Balkrishna Industries, SBI Cards and Astral were removed. There were also weight changes in existing stocks, including a lower weight for Reliance Industries and a higher weight for Eternal.

The heavy institutional orders caused sharp price swings near the close. Adani Enterprises fell nearly 9.8% and Adani Ports about 6.7%, showing that MSCI related flows can create large moves even without major fundamental news. Therefore, traders should be cautious when interpreting August 31 closing candles and technical indicators, as the unusual auction-driven volumes may temporarily distort price signals.

Stock Current Price Change
Laurus Labs ₹1,912.50 ▼ 1.34%
Lenskart Solutions ₹660.10 ▲ 3.76%
Adani Energy Solutions ₹1,556.90 ▼ 1.55%
Groww / Billionbrains Garage Ventures ₹194.30 ▲ 1.48%
Eternal ₹326.50 ▼ 0.46%
Adani Enterprises ₹3,076.70 ▼ 2.90%

Source: www.reuters.com


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