Nifty and Sensex closed in the red for the third consecutive day, after falling sharply in the last hour hour of trading on Friday. Nifty ended 1.50% lower, and Sensex ended 1.44% lower. Nifty had fallen as much as 1.77% to trade at 23,519, while Sensex fell as much as 1.69% to 74,711 at 3:10 pm.
This is on the back of the MSCI rejig today. According to Nuvama, India's weight in the MSCI Standard Index is expected to marginally decline to 12.3% from 12.4%.
Among index constituents, Powergrid and InterGlobe Aviation emerged as the top laggards in trade, with both stocks falling around 4%. The weakness was broad-based, with all sectoral indices trading in the red except Nifty IT, which managed to stay positive.
Barring IT, all sectors ended in the red, with losses led by Oil & Gas, and Metal.
Nifty Oil & Gas was the worst-performing sector of the day, declining more than 2%. Within the index, Aegis Vopak Terminals led the losses, sliding over 4.5%, followed by Oil and Natural Gas Corporation, which dropped more than 3%.
In the broader market, there was equal pressure, with Nifty Midcap 150 ended lower by 1.37%, while Nifty Smallcap 250 ended 0.65% lower.
The benchmarks fell sharply on the back of the MSCI rejig taking place today.
According to Nuvama, India's weight in the MSCI Standard Index is expected to marginally decline to 12.3% from 12.4%. Among the inclusions, Federal Bank is expected to attract the highest passive inflows of about $491 million, equivalent to 19 times its average daily volume (ADV). MCX could see inflows of $373 million, followed by NALCO at $308 million and Indian Bank at $209 million.
On the exclusion side, Hyundai Motor India is expected to witness the largest outflow of around $281 million, or 13 times its ADV. Other stocks likely to see passive outflows include Jubilant FoodWorks ($161 million), Kalyan Jewellers India ($137 million), and Rail Vikas Nigam Limited ($136 million).
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