Mid-cap IT stocks are all set to enter into Large-cap, even Zomato to follow the suite, says Report

In apparent MSCI Standard Index- Nov 21 Semi-Annual Review, Edelweiss Alternative Research names three stocks that are likely to enter into MSCI only if they reach expected share price target. Moreover, the research also explains how mid-cap IT firms may enter in large-cap going ahead.

In this regard, the shares of Tata Power have moved up over 25 per cent, since Edelweiss Alternative Research highlighted this stock. The report says, if the current price sustains till cut-off date then stock holds a high chance of inclusion with a flow of $150 million which is equivalent to 3-day ADV.

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The stock on Wednesday declined by around 2 per cent to Rs 175.85 per share on the BSE intraday today at around 11:01 am.

Similarly, Embassy Office Parks REIT’s shares need to move up by 15-18 per cent (CMP 348) and most importantly, the company needs to publish September shareholding by October 18, 2021, the report states adding further Post this MSCI will be required to adjust the Free Float of the company.

The stock intraday has been gaining over 1 per cent to Rs 347.58 per share on the BSE at around 11:05 am.

While Astral shares need to move up by 18-20 per cent (CMP 2,393) till the cut-off date to safely qualify for Nov Inclusion, says Edelweiss Alternative Research. The cut-off date is considered by MSCI is any day between October 18 to October 29, 2021.

The stock declined by around 4 per cent to Rs 2276.3 per share on the BSE at around 11:06 am intraday.

As per Edelweiss Alternative Research, early assessment SRF, Mindtree and Mphasis are high conviction migration from Midcap to Large-cap in AMFI categorisation. While Zomato will debut in large-cap category. AMFI will release official list on January 22 first week.

If all of our conviction names get included, then these names can lead to an inflow of over $1 billion in India, says the research report. Edelweiss Alternative Research had highlighted few stocks on radar with high conviction on September 27.