Inclusion of Indian Stocks in MSCI Index Signals Potential $2 Billion Inflows

The global investment community is gearing up for a substantial transformation in the MSCI global standard index, with expectations of incorporating various Indian stocks, potentially resulting in significant passive fund inflows. Nuvama Alternative & Quantitative Research forecasts the imminent inclusion of companies such as IndusInd Bank (NS:INBK), Suzlon, Paytm (NS:PAYT), Persistent Systems (NS:PERS), APL Apollo (NS:APLA), Polycab, Macrotech Developers (NS:MACE), Tata Motors (NS:TAMO) (NYSE:TTM) DVR, and Tata Communication. This adjustment is projected to attract around $2 billion in passive funds, with estimated individual stock purchases ranging between $160 million and $290 million.

Despite a 1.5% decline in the Benchmark Nifty50 over the past month, it has shown a 6% gain over the last six months. Noteworthy increases in the past month include 4% for IndusInd Bank’s shares and an impressive 37% for Suzlon. Notably, Suzlon’s value has quadrupled in just six months.

The MSCI index changes are slated for November 30 (UTC) and may introduce approximately two dozen domestic stocks such as Gokaldas Exports and SJVN (NS:SJVN). However, exclusions are expected for names like Vodafone (NASDAQ:VOD) Idea and Dalmia Bharat.

In a parallel development on the global indices front, FTSE Russell is also anticipated to make adjustments to its indices, welcoming Mankind Pharma on December 15 (UTC). This marks a significant period for Indian stocks on the international stage.