Markets set for cautious start; MSCI rejig today

Markets set for cautious start; MSCI rejig, HDFC Bank in focus

SEBI RA – Shubh Consultancy – Sunil Kotak – INH000015826 Monday, with investors bracing for potential volatility from MSCI’s index rejig under the new closing auction system, while an escalation in the Iran war and HDFC Bank’s CEO resignation could also weigh on sentiment. GIFT Nifty futures were at 24,222.5 points as of 8:11 am IST, indicating a muted start for the Nifty 50. The benchmark index closed at 24,175.65 on Friday and posted its third straight weekly decline. MSCI’s quarterly index changes will be implemented at Monday’s close and take effect on September 1. As part of its August review, the index provider added four Indian stocks to its widely tracked Global Standard index and removed three. This would be the first MSCI rebalancing under India’s new closing auction system, which has led to sharp swings in benchmark indexes, especially on monthly derivatives expiry days. “With these (passive fund) flows executed around the closing auction, the final half-hour could see outsized moves in affected stocks and the broader index, potentially making the closing print less representative of underlying market sentiment,” said Hariselvan Radhakrishnan, founder and CEO of HST Wealth. Meanwhile, global sentiment soured after US forces struck two Iranian launchers, marking the first known American strikes on Iran since late July. All this is for information This is not a buy/sell recommendation. Thank you, Technofunda24