MSCI Index Rebalancing: Stocks Included as India Anticipates $2 Billion Inflows
MSCI's quarterly rebalancing on May 31 is set to bring $2 billion into Indian equity markets. Thirteen new stocks, including PB Fintech and Sundaram Finance, will be added to the MSCI Global Standard Index, raising India's MSCI EM Index weight to 18.8%. Indus Towers is expected to attract the highest inflow of $224 million, followed by PB Fintech and Phoenix Mills. Additionally, 497 Indian entities will join the MSCI Small-Cap Index, while others, like Tatva Chintan Pharma, will be removed.
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Jun 5, 2024
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MSCI's quarterly rebalancing, effective after the May 31 market closure, is expected to bring approximately $2 billion into Indian equity markets. Thirteen new stocks, including PB Fintech, Sundaram Finance, NHPC, Phoenix Mills, Indus Towers, Bosch, Jindal Stainless, Solar Industries, Torrent Power, Mankind Pharma, JSW Energy, Canara Bank, and Thermax, will be added to the MSCI Global Standard Index. This addition increases India's weight in the MSCI EM Index to 18.8%, with the total number of Indian counters in the MSCI index rising from 136 to 146.
Nuvama Institutional Equities forecasts significant inflows for select stocks following the anticipated rebalancing. Indus Towers is expected to attract the highest inflow of $224 million, trailed closely by PB Fintech and Phoenix Mills at $223 million and $213 million, respectively. Other stocks could see inflows ranging from $144 million to $207 million. Thermax's inclusion in the MSCI index is on the cusp, with potential inflows of $139 million. Conversely, Paytm, Indraprastha Gas, and Berger Paints face exclusion from the index, which may result in combined outflows of approximately $283 million.
The MSCI Small-Cap Index will undergo alterations, incorporating 497 Indian entities post-rebalancing. Noteworthy newcomers to the Small-Cap index include Waaree Renewable, Vedant Fashions, Va Tech Wabag, RR Kabel, and Sanghvi Movers. Conversely, Tatva Chintan Pharma, Borosil, Sharda Cropchem, and Dreamfolks Services will be removed from the MSCI Small-Cap Index.
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