Nine stocks have made it to the MSCI India Standard Index, namely IndusInd Bank, Suzlon Energy, Persistent Systems, APL Apollo, Polycab, Macrotech Developers, Tata Motors A, One 97 Communications (Paytm) and Tata Communications. No Indian stock has been excluded, according to an MSCI release.
According to Nuvama’s estimates, the addition will likely result in a combined inflow of $1.72 billion.
The latest rejig of the MSCI Global Standard Index comes into effect on November 30.
Suzlon Energy, Persistent Systems and APL Apollo were earlier part of the MSCI Smallcap Index and will be removed from this index when the implementation comes into effect from November 30.
A lion’s share of the inflows is likely to be lapped up by IndusInd Bank at $290 million followed by Suzlon at $264 million and Persistent Systems at $254 million, the report said. The remaining stocks could see inflows between $227 million and $160 million in the pecking order.
The Nuvama research report noted IndusInd Bank decreased its foreign shareholding to 62.6%, thus meeting the minimum headroom requirement of 15%. “This development is expected to pave the way for its inclusion with a 0.5 factor in the November 2023 review,” the brokerage had said. IndusInd Bank’s – a Nifty stock – inclusion event was widely anticipated and some of the impact has already been factored into the stock price, the note said further.
The rejig exercise will also see inclusions and exclusions happening in the MSCI Smallcap Index. As many as 42 stocks will be added to this index while 19 stocks will make an exit from this index.
The entrants include the likes of AGI Greenpac, Dodla Dairy, Gokaldas Exports, SJVN, Hindustan Construction Company, Ptc India, Gateway Distriparks, Arvind Fashions, Electrosteel Castings, DB Realty, Orient Cements, Gabriel India, Astra Microwave, Lloyds Engineer among others.
Meanwhile, notable exclusions from the MSCI Smallcap Index are Jindal Stainless, Dalmia Bharat, Vodafone Idea, BHEL, Linde India, Thermax, ACC, Indian Bank and Escorts Kubota.
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