MSCI Global Update: Hyundai Motor India In, Adani Green Out
MSCI (Morgan Stanley Capital International) has updated its Global Standard Index for February 2025. The rebalancing adds Hyundai Motor India and removes Adani Green Energy. These changes will take effect on February 28, 2025.
Impact on Indian Markets
Hyundai Motor India’s inclusion boosts its visibility among global investors. This move will likely attract more foreign investments. In contrast, Adani Green Energy’s exit may lead to selling pressure as funds tracking MSCI indices adjust their portfolios.
IIFL Capital estimates that these changes will bring $850 million to $1 billion in passive inflows to Indian markets. Exchange-traded funds (ETFs) and index funds following MSCI benchmarks will modify their holdings, which may influence stock prices.
Why Did Hyundai Motor India Get Added?
Hyundai Motor India has shown strong sales growth and expanding market presence. Its inclusion reflects its rising significance in both Indian and global markets. Investors have shown increasing interest in the company, further strengthening its position.
Why Did MSCI Remove Adani Green Energy?
Adani Green Energy’s exclusion could stem from declining market capitalization, liquidity concerns, or MSCI’s revised criteria. This change might lead to short-term volatility as investors react.
What’s Next for Investors?
MSCI’s rebalancing affects stock trends and trading strategies. Hyundai Motor India’s addition will likely create buying interest, while Adani Green Energy’s removal could lead to selling pressure. Investors should monitor market reactions leading up to February 28, 2025, to make informed decisions.