Indian firms poised for investment boost with MSCI Index inclusion

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Indian firms poised for investment boost with MSCI Index inclusion
Credit: © Reuters.

Seven Indian companies are on the cusp of receiving significant investments as they stand on the threshold of inclusion in the MSCI Global Standard Index. The index review results, set to be declared on Tuesday, could mark a pivotal moment for these firms, indicating their consistent growth and prominence within their respective sectors.

Leading the group with a projected influx of $288 million from passive funds is IndusInd Bank (NS: INBK ), which has demonstrated resilience and robust performance in the banking industry. This expected inflow underscores the bank's unique shareholding pattern and more than 15% foreign investment headroom.

Other companies expecting substantial inflows include Persistent Systems (NS: PERS ) and APL Apollo (NS: APLA ) Tubes, with anticipated amounts of $228 million and $192 million, respectively. Suzlon Energy (NS: SUZL ), which is also likely to join the AMFI's midcap category soon, stands to receive an estimated $186 million.

Despite experiencing slight stock declines on Monday, Polycab India (NS: POLC ) and One 97 Communications Ltd (Paytm (NS: PAYT )) are estimated to attract $168 million and $150 million respectively. Paytm's potential inflow is particularly notable, reflecting investor confidence in the digital payments sector.

Tata Communications (NS: TATA ) and Macrotech Developers (NS: MACE ) Ltd (also known as Lodha) have borderline chances for inclusion, yet they may still garner investments of $144 million and $138 million, respectively, due to their recent performances.

On the flip side, AU Small Finance Bank (NS: AUFI ) could experience a substantial outflow of $78 million following its exclusion from the index, as estimated by JM Financial (NS: JMSH ). This anticipated change reflects the dynamic nature of index-based investments and their impact on company valuations.

The MSCI semi-annual index review is keenly watched by investors as it can lead to reallocation of funds across global markets. The potential inclusion of these Indian firms not only signifies their stability but also points to broader economic growth opportunities within India.

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  • krunal market @krunal market
    it is good for investment above stocks?
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    • Pradyut Roy @Pradyut Roy
      @krunal market Not at all - This is trap of finding new Retail investors so that they can come out from the positions
      Like 0
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