MSCI India rejig: JM Financial sees 3 inclusions, 2 exits & $1.4 bn inflows
JM Financial is in focus with November 11 in focus.
· Business Standard Mkts
The MSCI Standard Index rebalancing, one of the most closely watched rebalancing events of the year globally, is scheduled for November 11, post-market hours.
Key facts
- Dates in focus
- November 11
The analysis
Against that, the stock is -4.2% on the day at ₹106.30, and has returned -10.8% over three months. It sits 38% below its 52-week high, which means a good deal of bad news was already in the price. The capital markets sector has moved -6.6% over the same period, so JM Financial is running 4.2 points behind its peers.
This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it. On the day the stock is -4.2%, so the tape moved decisively on this.
For JM Financial, the question is how much of this is already reflected in the price and how much re-rates the capital markets peer set alongside it.
Market context
- The company directly in focus is JMFINANCIL.
- Sector exposure: Capital Markets, Financial Services.
In this story
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