MSCI, the global index aggregator, will include a few indian companies into the index, with the potential for $501 million in see inflows, according to Nuvama Alternative & Quantitative Research.
The MSCI (Morgan Stanley Capital International) Index is a globally recognized benchmark for tracking equity market performance across various regions and sectors. It provides investors with a comprehensive measure of stock market trends, facilitating comparisons and investment decisions based on the performance of constituent stocks.
Coromandel International and FSN E-Commerce Ventures (Nykaa) will be added to the MSCI India Index, part of the MSCI Global Standard Index, by end-May. As per Nuvama Research, Coromandel may attract inflows of $252 million, while Nykaa is expected to see $199 million in passive inflows. GMR Airports will also be added to the MSCI India domestic index..
Furthermore, companies such as Cipla, Indus Towers, UltraTech, Grasim, and Vodafone Idea will see increased weightage on the MSCI Standard Index, attracting inflows of up to $50 million. Conversely, HDFC Bank, ICICI Bank, Infosys, and Bharti Airtel will face a reduction in weightage. However, One97 Communications, the parent of Paytm, has not been added to the MSCI indices, despite earlier analyst expectations of its re-inclusion after being dropped in May last year. The exclusion comes as a surprise, as many anticipated the stock’s return to the index based on recent market developments.
In addition to the other updates, 12 stocks have been added and 21 removed from the MSCI India Domestic Smallcap Index. These changes will be effective after the market closes on May 30, 2025, reflecting the index’s latest rebalancing adjustments.
Auto components maker Sona BLW Precision Forgings has been excluded from the MSCI India Domestic Index and added to the Smallcap Index. New inclusions in the Smallcap Index include Godrej Agrovet, Hexaware Technologies, and Premier Energies, while exclusions feature Aarti Drugs, Prince Pipes, and Orchid Pharma, among others.
Written by Abhishek Singh
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