Suzlon to see buying interest after inclusion in MSCI

Confirming the news, Sarang Wadhawan of HDIL says the inclusion will increase foreign institutional investors' (FIIs') holding. HDIL, which has an enabling resolution of USD 450 million, he says, will consider raising equity fund in January 2010. The company is operating on 30-35% operating margins, he says, adding, "We have cut prices by 25% and rolled back by 15%."

Post tax raid, the company has booked Rs 110 crore of income, he informs.

Suzlon has given a bit of surprise to many of the analysts which is some good news for the company. The stock may see bit of buying interest because of the MSCI inclusion. However, the street is largely surprised by the fact that BoI was anticipated as an addition to the MSCI and that stock may just be an under performer because there was a bit of pile up as well on the BoI stock. A lot of people are debating that some bit of under performance will be seen.

If you look at Wednesday's trade,  the flows were large because of  rebalancing the Nifty free float. There was some bit of Reliance's weightage, which went up. This is one stock which saw good amount of buying interest along with Tata Steel and Tata Motors . Hence, these were the three large stocks which led to this rally in yesterday's trade.

From now, it looks like it will be largely a mirror of hat happening in Asia, but Wednesday's big move was largely because of the rebalancing. After the MSCI addition, one will see some movement in Suzlon and under performance from Bank of India.