YES Bank Ltd, Suzlon Energy Ltd, Vedanta Ltd, Zomato Ltd and Polycab India Ltd are some of the stocks whose weightages have been raised in the MSCI Global Standard index in May review, the global index aggregator said on Wednesday. PB Fintech Ltd (Policybazaar), Sundaram Finance Ltd and NHPC, on the other hand, are stocks that are included in the MSCI Global Standard Index. Others shares that were included to the index: Solar Industries, Mankind Pharma, Bosch, Indus Towers and Canara Bank. The MSCI rejig is seen attracting $2.5 billion in total passive inflows to India.
India's representation in the MSCI EM Index is likely to increase from the current 18.3 per cent to closer to 19 per cent. This increase in weight, in terms of basis points, is the highest among any EM Index in this rejig, Nuvama noted.
Three stocks namely One 97 Communications Ltd (Paytm), Indraprastha Gas Ltd (IGL) and Berger Paints Ltd have been removed from the global standard index, data showed. Dabur India, ICICI Lombard, Jubilant Foodworks and PI Industries saw reduction in weightages in My review.
PB Fintech, Sundaram Finance, NHPC, Phoenix Mills and Indus Towers are seen attracting 200-300 million in passive inflows each. Bosch, Jindal Stainless, Solar Industries and Torrent Power are also seen gaining from the MSCI rejig. Weighs for Vedanta, Zomato, Polycab India, YES Bank and Suzlon Energy have also been raised
Instead Paytm and IGL have been shifted to MSCI Smallcap index. Others in the smallcap index included HUDCO, Vedanta Fashions, Waaree Renewable, RR Kabel, Gillette India, Force Motor and Va Tech Wabag.
The MSCI adjustments are slated for May 31, and India is expected to witness a net inflow of upwards of $2.5 billion in FII passive flows. With 13 inclusions and three exclusions, the net stock count post-rejig will be 146 for India in the MSCI Standard/EM Index.
Additionally, there would be a net inclusion of 14 stocks in the Smallcap Index, bringing India's total stock count in the small-cap index to 497, Nuvama noted.
"I remain extremely bullish on India, especially with active participation from Mutual Funds and HNI/Retailers in the Indian Equity Markets. We should anticipate many more inclusions in the EM Index. We are still at the tip of the iceberg," said Abhilash Pagaria, Head of Nuvama Alternative & Quantitative Research.