Supreme Industries, REC surge on MSCI addition, ACC dropped from Global Standard Index

Stock Market

MSCI on August 11 unveiled its list of stocks as part of the August Global Standard Index review, effective from September 1, 2023. The revised index features notable additions, including Power Finance Corporation (PFC), Rural Electrification Corporation (REC), Astral, and Ashok Leyland.

Supreme Industries, IDFC First Bank, and HDFC Asset Management Company (AMC) have also been included in the Global Standard Index.

The review has resulted in the exclusion of ACC from the Global Standard Index.

Following this, Supreme Industries surged over 8 percent in early trade to Rs 344 on the NSE and REC gained 5 percent to Rs 229.70. Meanwhile, opened lower in trade and fell 1 percent in early trade.

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According to Nuvama Alternative and Quantitative Research, PFC and HDFC AMC are likely to see inflows of $203 million and $153 million respectively.

On the other hand, IDFC First Bank is likely to see inflows of $204 million, while Ashok Leyland, Cummins India and Astral will attract inflows worth $196 million, $173 million and $170 million based on their calculations.

The exclusion of ACC from the index is anticipated to result in outflows of approximately $92 million, as outlined in the Nuvama research note.

Nuvama Alternative & Quantitative Research called the entry of REC and Supreme Industries into the index as a surprise, adding that they were strong contenders for the November 2023 review.