MSCI rebalancing to attract FII inflows worth $2 billion in India : Daily Market Update - 15 May 2024 | Globe Capital Market LTD.
MSCI rebalancing to attract FII inflows worth $2 billion in India : Daily Market Update – 15 May 2024

The May review of the MSCI indices will be conducted on Wednesday, May 15, with the adjustments coming into effect on May 31. With the reshuffle announced by the global index services provider, Indian equities will attract inflows from passive funds tracking emerging market (EM) indices tomorrow. At least 12 stocks could be included in MSCI global standard index. The list includes Indus Towers,  Phoenix Mills, Policy Bazaar, Sundaram Finance, NHPC, Bosch, Solar Industries, Jindal Stainless, Mankind Pharma, Torrent Power, JSW Energy and Canara Bank.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat to positive note.
  • Barring DAX, other European equity markets settled on a flat to positive note.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is up by 60 points, Nifty futures likely to open around 22380 levels (as on 8:30AM).


News highlights from across the globe

  • Markets in Asia-Pacific region are trading higher on Wednesday taking cues from overnight rally in the US stocks. Moreover, traders keenly await for release of US CPI print for April later today, which will provide fresh clues about the Federal Reserve’s policy going forward.
  • On Wall Street, share indices ended higher shrugging Producer Price Index data on Tuesday due to big-tech rally.
  • Brent crude was trading 0.34% higher at $82.72 a barrel.


Important news updates from the domestic front

  • Bharti Airtel Q4 FY24 (Consolidated, QoQ) Revenue down 0.8% at Rs 37,599 crore vs Rs 37,899 crore Ebitda down 2.3% at Rs 19,365 crore vs Rs 19,815 crore, Ebitda margin AT 51.5% VS 52.3% Net profit down 28% at Rs 2,068 crore VS Rs 2,876 crore Final dividend of Rs 8 per share.
  • Siemens India Q2 (Consolidated, YoY) Revenue up 18.4% at Rs 5750 crore vs Rs 4,858 crore Ebitda up 41.4% at Rs 878 crore vs Rs 621 crore. Margin at 15.3% vs 12.8%. Net profit up 70.2% at Rs 803 crore vs Rs 472 crore. Announced capex of over Rs 1,000 crore for expansion of operations. Approved the demerger of Energy Business into a separate listed legal entity. Share Entitlement Ratio fixed at 1:1.
  • Shree Cement Q4 FY24 (Consolidated, YoY) Revenue up 6.5% at Rs 5,433 crore vs Rs 5,100 crore. Ebitda up 59.9% at Rs 1,422 crore vs Rs 889 crore. Margin at 26.2% vs 17.4%. Net profit up 28.7% at Rs 676 crore vs Rs 525 crore.
  • MSCI May Review: MSCI Inc. has added 13 Indian stocks to its Global Standard Index under quarterly review for May.
  • Mahindra & Mahindra arm Mahindra Holdings sold the entire 30.8% stake in the New Delhi Centre for Sight for Rs 425 crore.
  • Aurionpro Solutions: The Board recommended a bonus issue in the ratio of 1:1.
  • Bigbloc Construction announced a temporary shutdown of the Umargam plant for 45–60 days.
  • The New India Assurance appointed Vimal Kumar Jain as CFO and Pooran Kumar Tulsiani as CIO.


Nifty Overview & Outlook

Benchmark Nifty index settled higher above 22200 levels after adding over 100 points to its previous closing values.

Broader markets outperformed the benchmark as Small Cap and Mid cap indices gained 2.03% & 0.70% respectively.

Majority of sectoral indices, barring FMCG and Pharma index, tracked at NSE settled higher. Amongst them, Metal index was at the top of the tally, soared nearly 3% followed by Auto and Oil & Gas index that rose 1.83% & 1.56% respectively.

Technically, Nifty index is trading in the resistance zone of 22200-22300 levels (as mentioned in our previous post dated May 14, 2024). Going ahead, Crossover and sustenance above 22300 levels will open the door for further up move towards 22425-22550 levels in immediate short term.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Banknifty and Finnifty futures with increase in open interest by 2.6% and 9.3% respectively. On the other hand, Nifty and Midcap nifty futures shed around1.6% and 2.8% of open interest respectively as short covering.

Majority of F&O sectors settled on a positive note. Amongst them, Chemical and Reality stocks witnessed maximum addition of long positions whereas Media, Pharma and FMCG stocks were down on short buildup and some short covering was seen in Banking, Finance and infrastructure stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 22000 PE and 23000 CE closely followed by 22500.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4066 Cr in the cash segment, sold stocks futures worth Rs 1169 Cr and also sold index futures worth Rs 2364 Cr. DIIs were net buyer in the cash segment to the tune of Rs 3528 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22400-22520; Supports 22200-22100

Banknifty – Resistances 48220-48380; Supports 47800-47600

Finnifty – Resistances 21400-21480; Supports 21300-21200






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