MSCI index likely to add Indian stocks, $2 billion inflows expected

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MSCI index likely to add Indian stocks, $2 billion inflows expected
Credit: © Reuters.

The global investment community is poised for a significant reshuffle of the MSCI global standard index, which is anticipated to include a range of Indian stocks, potentially leading to substantial passive fund inflows. Nuvama Alternative & Quantitative Research predicts that the index will soon feature 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 inclusion is expected to attract around $2 billion in passive funds, with individual stock purchases estimated to reach between $160 million and $290 million.

Despite the Benchmark Nifty50 experiencing a 1.5% dip over the past month, it has gained 6% over the last six months. Among the stocks set for inclusion in the MSCI index, IndusInd Bank's and Suzlon's shares have seen remarkable increases of 4% and 37%, respectively, in the past month. Notably, Suzlon's value has surged more than fourfold in just half a year.

The changes to the MSCI index are scheduled for November 30 (UTC) and could add approximately two dozen domestic stocks like Gokaldas Exports and SJVN (NS: SJVN ). However, some names such as Vodafone (NASDAQ: VOD ) Idea and Dalmia Bharat are slated for exclusion.

In a related development on the global indices front, FTSE Russell is also expected to make adjustments to its indices by incorporating Mankind Pharma. These changes are due on December 15 (UTC), marking a notable period for Indian stocks on the international stage.

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