Hello community. I am confused about this whole MSCI rejig and its impact. As we all know, futures are trading at deep discount since last many days. I thought that this is happening due to MSCI rejig. But today was something extraordinary – Sep/Oct futures trading at almost INR 6 discount. I am not able to understand the reason. Is it like some institutions are short selling in futures? As I understand, MSCI inclusion should bring in $210M in this stock, so price should go up. Then why people are short-selling it?
Another puzzle is today’s 11.5 Cr selling by “BNP Paribas Arbitrage”. By name, it sounds like an arbitrage fund, trying to benefit from this MSCI story by shorting this stock. Again the same question – why would someone short, if there is clearly an increased fund flow in to the stock (and hence more demand for shares).
Please help. Thanks in advance.
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