HCL Tech worst performer on Nifty 50 as MSCI trims weightage

Shares of HCL Technologies were trading in the red early on February 10 tracking changes in MSCI review. At 10:58 am, shares of the technology major were trading at Rs 1119.95 apiece, down 2.3 percent, on the BSE - making it the worst performer on the Nifty50 index.

The weightage of HCL Technologies in the MSCI index has been reduced which could trigger an outflow of about $97 million, according to Abhilash Pagaria of Nuvama Alternative & Quantitative Research.

The brokerage firm’s note showed that the proforma weightage of the stock in the index is 1.5 percent and the weightage reduction is of 0.2 basis points which will result in the selling of seven million shares.

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Along with HCL Technologies, other stocks that are likely to witness selling due to a reduction in weightage are Jindal Steel & Power (-$19 million), Shriram Finance (-$14 million), ACC (-$12 million), but the heaviest outflow among all is likely to be witnessed in Adani Transmission (-$145 million), Adani Total Gas (-$110 million) and Adani Enterprises (-$161 million), as per the brokerage firm.

Year-to-date (YTD), the stock is up nearly 8 percent. Overall, several fund managers now believe that the IT stocks look attractive. HCL Technologies stock is 10.5 percent away from its 52-week high of Rs 1,215, taking into account today’s low.