entry to msci index, page-51

Index Funds will buy much closer to the actual date of change, as any movement from now until the effective date is not included in the actual Index. Also they first have to sell the stocks that were removed from the Index to get the liquidity to buy.

These funds are not likely to play games like drop the price and then pick up the stock, all they have to do is ensure that their portfolio matches the actual Index so that the actual fund performance correlates to the Index performance.

On traditional valuation matrix A2M is expensive plus its weightage in the Index is relatively small so funds that are not Index but benchmark their performance to the Index are not likely to buy now. They are looking for alpha so if the stock has minor weightage and fully priced then they will not buy in.

What you are seeing today is this:In the last few days speculators and day traders took position in anticipation of the inclusion and to make a quick profit, this is why the price moved in last few days. Now the anticipated price rise is not there, so they are exiting their position. True impact of the inclusion will only be known by 15 June.