Latest news with #MSCIStandardIndex
Mint
14-05-2025
- Business
- Mint
Nykaa share price gains over 3% following inclusion in MSCI Global Standard Index; inflows worth $172 million expected
Nykaa share price jumped over 3% after global index provider MCSI announced the stock's inclusion in its Global Standard Index. Nykaa shares rallied as much as 3.44% to ₹ 204.35 apiece on the BSE. FSN E-commerce Ventures, the parent company of the fashion and beauty e-tailer Nykaa, has been added to the MSCI India Index, a component of the broader MSCI Global Standard Index. The inclusion was part of MSCI's May index rebalancing, announced on May 14. In addition to Nykaa, Coromandel International has also been added to the index. However, Coromandel shares declined over 4% during Wednesday's trading session. MSCI stated that no deletions were made from the index in this review. The changes will be effective from the close of trading on May 30, 2025. According to JM Financial, Nykaa is expected to witness passive inflows of approximately $172 million due to its inclusion in the MSCI Standard Index. Coromandel International is projected to attract inflows of $216 million. Additionally, Cipla, Indus Towers, Grasim Industries, and Infosys have seen an increase in their weightage within the MSCI Standard Index. Estimated inflows from this weight adjustment are as follows: Indus Towers: $36 million Grasim Industries: $17 million Nykaa share price is forming a 30-week-long rounding bottom on the weekly chart, but the setup lacks strength due to weak volume — indicating limited institutional participation, noted Anshul Jain, Head of Research at Lakshmishree Investments. 'Nykaa share price action also lacks a clean pivot breakout, making the pattern less reliable. Despite the structural hint of a potential base, the move appears rough and lacks conviction. If Nykaa stock manages to sustain upward, it may still head toward the ₹ 230 level, but traders should approach with caution and wait for clearer confirmation,' Jain said. Nykaa share price has delivered strong short- to medium-term performance, gaining 10% over the past month and 17% in the last three months. On a year-to-date (YTD) basis, Nykaa stock price is up 20%, with a 17% return over the past year and an impressive 60% gain over the last two years. However, despite these recent gains, Nykaa share price remains down 10% over a three-year period. At 11:20 AM, Nykaa share price was trading 0.18% higher at ₹ 197.90 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
21-04-2025
- Business
- Mint
Eternal share price volatile on foreign shareholding cap: What does it mean for business and MSCI weightage? EXPLAINED
Eternal, formerly known as Zomato, shares were volatile on Monday following the company's decision to cap foreign shareholding at 49.5%. Eternal share price initially fell over 2% but later recovered, rising as much as 1.48% to an intraday high of ₹ 235.20 on the BSE. The company's board approved the proposal on April 18, which now awaits shareholder approval via postal ballot, with results expected by May 21, 2025. Once approved, the cap will be implemented immediately. As of March 31, 2025, Foreign Institutional Investors (FIIs) held 44.88% in Eternal, while Indian ownership stood at 55% — meeting the requirement to qualify as an Indian - Owned - and - Controlled Entity (IOCC). Eternal said the move aims to preserve its IOCC status, aligning with regulatory norms and enabling greater operational flexibility — especially for its quick commerce arm, Blinkit. Currently, Blinkit operates as a marketplace with third-party sellers. As an IOCC, Blinkit can transition to an inventory-led model — owning and managing its own stock. According to Kotak Institutional Equities, this shift would allow Blinkit to expand into new categories such as home décor, gourmet foods, toys, and seasonal products. While the change would increase working capital requirements, it is expected to boost margins and return on capital employed (ROCE) over the long term. Kotak estimates a 40–50 basis points improvement in margins, even though it would lead to a heavier balance sheet. Blinkit, as an IOCC, will stand on par with domestic retail giants like Reliance and DMart, and gain a potential edge if future regulations favor IOCCs. Among e-commerce players, Blinkit would be the only IOCC, while competitors like Swiggy, Zepto, Flipkart, and Amazon have significantly lower domestic ownership. Analysts warn that capping foreign ownership could reduce Eternal's weight in global indices, prompting passive fund outflows. MSCI Impact: Eternal's weight in the MSCI Standard Index (currently 1.33%) may be halved due to reduced FII headroom. This could lead to outflows of ~$600 million or around 226 million shares, equal to 2.7 days of trading volume. FTSE Impact: Eternal could be fully removed from the FTSE Emerging Markets Index. Outflows may total ~$100 million per quarter (37 million shares), spread across 4–5 quarterly reviews. However, if FII headroom improves above 10%, further reductions could be paused. While index-related outflows may cause short-term pressure on the stock, analysts see no major long-term derating risk. 'A potential price correction of approximately 5%+/- may result from this development. However, I don't perceive this as a significant derating scenario for the stock. Based on my interactions with domestic clients, there's evident interest in accumulating the stock should it decline below ₹ 205 or ₹ 210, compared to the current market price of ₹ 230,' said Abhilash Pagaria of Nuvama Alternative & Quantitative Research. Eternal share price has risen 2.5% in one month and more than 8% in three months. Over the past six months, Eternal shares declined 12%, while the stock rallied 23% in one year. Eternal stock price has delivered multibagger returns of 316% in two years. At 12:35 PM, Eternal shares were trading 0.58% higher at ₹ 233.10 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 21 Apr 2025, 12:36 PM IST
