The MSCI India Index is a composite of Indian stocks created by Morgan Stanley Capital International (MSCI). It includes many reputable Indian companies across sectors, representing at least 85 percent of the total equity offered by Indian companies.
The upcoming rebalancing of the MSCI India Index announced on Monday after market hours, is set to include 8 new companies – Dixon Technologies, Vodafone Idea, Rail Vikas Nigam Limited (RVNL), Zydus Lifesciences, Oracle Financial Services Software (OFSS), PB Fintech, Oil India and Bosch Ltd.
Bandhan Bank is the only Indian stock that will be excluded from the index.
According to Nuvama Alternative & Quantitative Research, a total inflow in new additions is anticipated to be $1.6 billion across these eight companies. The estimated inflows for each company, as provided by Nuvama, are detailed in the table below.
| MSCI India Index Inclusions | Inflow Estimates As Per Nuvama Wealth |
| Dixon Technologies | $281 Million |
| Vodafone Idea | $278 Million |
| Oil India | $238 Million |
| Zydus Lifesciences | $230 Million |
| RVNL | $219 Million |
| Oracle Financial Services | $170 Million |
| Prestige Estates | $181 Million |
HDFC Bank, India’s largest private lender, is set to see its weight in the MSCI index increase, but in two phases: one after the current review and another after the November review, provided foreign headroom stays above 20 percent.
With FIIs holding below 55 percent, HDFC Bank’s weight could rise to 7.2-7.5 percent from 3.8 percent, potentially triggering passive inflows of up to $4 billion, according to Nuvama.
The inclusion of stocks in the MSCI India Domestic Index typically leads to significant impacts on their market performance, primarily driven by increased demand from global investors.
It ensures the index accurately reflects current market conditions, providing a reliable benchmark for performance measurement.
Companies added to the MSCI index often experience an immediate price increase following the announcement. Among the recent inclusions, Dixon’s share price rose by 3 percent, RVNL’s by 2.25 percent, Oil India’s by 1.5 percent, and Oracle Financial Services’ by 1.3 percent.
Written by – Siddesh S Raskar
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