MosChip Technologies Rebounds After MSCI Index Deletion Announcement

MosChip Technologies Limited shares clawed back 0.97% to ₹239.40 in Wednesday afternoon trading, marking a partial recovery from recent volatility. The semiconductor stock swung between ₹222.00 and ₹243.87 during the session, with over 1.77 million shares traded worth ₹418.74 crore by early afternoon.

The rebound comes despite MSCI's decision to remove MosChip from its India Small Cap Index effective May 30, 2025, as part of quarterly rebalancing. Twenty-two stocks face deletion from the index, with MosChip's removal likely triggering passive fund outflows. Both BSE and NSE have placed the stock under Additional Surveillance Measures following a 63% seven-session rally and subsequent sharp corrections.

Trading at a 70.69% annualized volatility, MosChip carries a 50% margin requirement—a clear warning sign for risk-averse investors. The stock remains 11% below its September 8 peak of ₹268.75, though still 84% above its April 7 low of ₹129.98. Market participants attribute recent swings to speculative bets on India's semiconductor ambitions, though fundamentals now take a backseat to technical factors.