With the MSCI global cut-off period for index rejig draws near, Nuvama Institutional Equities sees stocks such as Polycab India, One 97 Communications Ltd, Macrotech Developers Ltd (Lodha), Tata Communications and Tata Motors DVR as potential entrants to the MSCI Global Standard Index. If it does, the five stocks may see up to $194 million in passive inflows or $877 million in combined inflows, Nuvama said.
Suzlon Energy, Persistent Systems and APL Apollo Tubes could be migrant entrants from the MSCI Smallcap index. Jindal Stainless is a close NOC contender, Nuvama said. The domestic brokerage said if FPIs significantly cut their stakes in IndusInd Bank and foreign room expands, the banking stock could become a potential new entrant with an approximate inflow of $280 million.
The global cut-off period for the MSCI rejig is October 18-October 30 and, as per Nuvama, the selection day will be the initial few days of cut-off period itself. The official changes will be announced on November 14 and the likely adjustments will be made on November 30.
As per the research, Polycab India could see $194 million in passive inflows. It would be followed by Paytm ($167 million), Lodha ($170 million), Tata Communications ($172 million) and Tata Motors DVR ($174 million).
IT firm Persistent Systems is seen attracting $237 million in flows, APL Apollo $219 million, Suzlon Energy $193 million and Jindal Steel $143 million. Meanwhile, the MSCI Smallcap Index could sees entry of stocks such as Redtape, Electronics Mart, Force Motors, Surya Roshni, Force Motors, Gabriel India and Astra Microwave, among others.
Exits may include Oberoi Realty, BHEL, Vodafone Idea, Delta Corp and Indian Bank, among others.
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