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BSE , Voltas, Alkem Laboratories, Kalyan Jewellers, and Oberoi Realty will now be part of the MSCI Global Standard Index following its latest rejig, according to a statement released on Thursday. The changes will take effect from November 25. Meanwhile, India is expected to see net FII passive inflows of approximately $2.
5 billion due to the rebalance, according to Nuvama Alternative & Quantitative Research. Among the new entrants, Voltas is expected to attract the highest inflow of $312 million, followed by BSE at $259 million. Kalyan Jewellers, Oberoi Realty, and Alkem Labs are estimated to receive $241 million, $215 million, and $204 million, respectively.
Adani Energy, which many had anticipated for inclusion, was excluded due to low confidence in its free float, as detailed by MSCI. In addition, banking giant HDFC Bank will see the second tranche of its weightage increase on the index, resulting in further inflows. MSCI had previously announced an increase in HDFC Bank's weightage in the August rejig, opting to implement the adjustment in two stages rather than as a one-time boost.
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In addition to HDFC Bank, stocks such as Tata Power, JSW Energy, Samvardhana Motherson, Jindal Steel & Power, PB Fintech, and APL Apollo Tubes will also see an increase in their weightage on the MSCI Global Standard Index. In contrast, adjusted for free float, Adani Green Energy, GMR Airports Infra, and Adani Power will experience reductions in their weightage. Similarly, major stocks like Reliance Industries, ICICI Bank, Infosys, TCS, and Bharti Airtel are also set to face weightage cuts.
Meanwhile, 13 additional stocks will join the MSCI India Smallcap Index, including Eureka Forbes and Signature Global, each expected to attract inflows of $7 million. Other entrants—such as Aadhaar Housing Finance, JSW Holdings, Anup Engineering, Indegene, Ganesha Ecosphere, PC Jewellers, DCM Shriram, Balu Forge Industries, Refex Industries, Bondada Engineering, and Entero Healthcare—are projected to draw inflows ranging from $3 million to $7 million. These additions could collectively bring approximately $71 million in total inflows, according to Nuvama Alternative.
The latest rejig is also expected to increase India's weightage in the MSCI Emerging Market Index from the current 19.3% to approximately 19.8%.
This increase, in terms of basis points, is the largest among any EM index in this rejig. Following the rebalancing, Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research, said, "I remain extremely bullish on India, especially with active participation from Mutual Funds and HNI/retail investors in the Indian equity markets . We should anticipate many more inclusions in the EM Index.
" Currently, China holds the highest representation in the MSCI EM Index with a weightage of 27%, comprising 598 members, compared to India’s 19.3% weight with 151 stocks. "There is enormous potential for more additions for India.
Stay structurally bullish on India," he added. ( Disclaimer : Recommendations, suggestions, views, and opinions provided by the experts are their own and do not represent the views of The Economic Times.) (You can now subscribe to our ETMarkets WhatsApp channel ).
