Sensex, Nifty at lifetime highs, know what Morgan Stanley, Macquarie, Motilal Oswal have to say on MSCI rejig

Both BSE Sensex and NSE Nifty hit their all-time highs on Tuesday and the trend is what investors want to know about going forward. Zee Business Managing Editor Anil Singhvi has mentioned clearly that the rally in the markets is due to strong FII inflows in past few sessions. He added that over Rs 3000 cr of buying every day cannot sustain for long, so investors and traders need to be cautious. This kind of heavy buying could be because of MSCI rejig which implies buying in emerging markets including India.

Below are the highlights:  

12 stocks will be added to the standard index and 2 names removed. Net inflows into India are estimated to be around $ 4.1 bn (weight changes + Inclusions minus Exclusions: adjusted for rebalancing). The weight changes and inclusions on account of FEMA implementation are likely to be conducted at one go since there is no announcement regarding the same. Motilal Oswal says Cadila Healthcare & SBI Cards have not been added, not expecting Yes Bank & Trent to be included. They were not expecting any deletions either. Actual buy / sell will be done by funds on 27th Nov last 30 mins (since 30th Nov is an trading holiday for India.

Kotak Bank will remain in focus as Motilal Oswal says $797 mn inflows will come in Kotak Bank while Edelweiss says $530 mn inflows will come due to MSCI rejig.

According to Macquarie, Kotak Bank will get $1094 mn, Adani Green will get $402 mn, Bajaj Finance will get $353 mn, PI Industries will get $209 mn, L&T will get $200 mn, Asian Paints to get $198 mn, NTPC to get $197 mn, Apollo Hospitals will get $196 mn, L&T Infotech will get $196 mn and Britannia to get $191 mn.

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Morgan Stanley thinks Kotak Bank will get $745 mn inflows while Adani Green will see $273 mn inflows. Bajaj Finance may get $250 mn flows, PI Industries will get $150 mn flows, Apollo Hospitals to get $147 mn, Asian Paints will see $144 mn and L&T to get $142 mn.