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MSCI’s quarterly rejig, effective after the market close on May 31, will likely inject around $2 billion into Indian equity markets. This rebalancing will introduce 13 new stocks to the MSCI Global Standard Index while removing three.
The new additions include Bosch, Canara Bank, Indus Towers, Jindal Stainless, JSW Energy, Mankind Pharma, NHPC, PB Fintech, Phoenix Mills, Solar Industries, Sundram Finance, Thermax, and Torrent Power. Consequently, the MSCI index will now feature 146 Indian stocks, up from 136. This change will increase India’s weight in the MSCI Emerging Markets Index to 18.8 percent.
Nuvama Institutional Equities projects the highest inflows for Indus Towers at $224 million, followed by PB Fintech and Phoenix Mills at $223 million and $213 million, respectively. Other stocks are expected to attract flows ranging from $144 to $207 million. Thermax, seen as borderline for inclusion, could see inflows of $139 million if added.
Conversely, Paytm, Indraprastha Gas, and Berger Paints will be excluded, potentially leading to combined outflows of around $283 million.
The MSCI Smallcap Index will also undergo changes, increasing the number of listed Indian entities to 497. Stocks like Waaree Renewable, Vedant Fashions, Va Tech Wabag, RR Kabel, and Sanghvi Movers will be included, while Tatva Chintan Pharma, Borosil, Sharda Cropchem, and Dreamfolks Services will be excluded.
