Shares of Max Healthcare, Sona BLW Precision Forgings, and Hindustan Aeronautics will now be included in the (Morgan Stanley Capital International) MSCI India Standard Index. as part of the May 2023 rejig
In its May 2023 rejig, MSCI has excluded Adani Transmission, Adani Total Gas and Indus Towers from the India Standard Index. The changes, part of MSCI's quarterly index review, will be effective from May 31
As per Nuvama Alternative and Quantitative Research’s preliminary calculations, as a result of this rejig, India can receive net passive foreign flows of $600 million to $700 million
According to Nuvama, Max Healthcare, Sona BLW, and HAL's inclusion could result in an inflow of $295 million for Max Healthcare, $195 million for HAL and $175 for Sona BLW
Meanwhile, the exclusion of Adani Transmission, Adani Total Gas, and Indus Towers could lead to outflows of $201 million, $186 million and $84 million respectively
The exclusion of the Adani Group stocks comes after the MSCI lowered their free float in its review. MSCI said that it has cut the free float of Adani Total Gas to 14% from 25% earlier, while that of Adani Transmission has been reduced to 10%
Kotak Mahindra Bank, Maruti Suzuki India, ONGC, UltraTech Cement, InterGlobe Aviation, and Zomato stocks have seen an increase in weightage. Infosys, ICICI Bank, JSW Steel, HDFC and TCS are some of the stocks that have seen a reduction in weightage
KFin Technologies, Kaynes Technology, Bikaji Foods, Fusion Micro Finance, Syrma SGS Technology, Religare Enterprises, NMDC Steel, ACE, Ujjivan Small Finance Bank, Maharashtra Seamless, RVNL and IRCON have now been included in the MSCI India Smallcap Index
Max Healthcare, Polycab India, Gillette India, Dhani Services, Radico Khaitan, Astec Lifescience, Dilip Buildcon, Thyrocare and PC Jewellers stocks have been excluded from the MSCI India Smallcap Index
MSCI has announced the biggest weight increase in Kotak Mahindra Bank, which could lead to an inflow of $810 million. Foreign investors' shareholding in the bank had dropped 1.47% in the March quarter, thus opening up the foreign room and making it eligible for weight increase
Maruti Suzuki ($87 million) ONGC ($74 million), Ultratech Cement ($72 million), Interglobe Aviation ($63 million), and Zomato ($59 million) are some other stocks that will see their weight go up in the MSCI index
Meanwhile, prominent weight reductions are in Reliance Industries (RIL), Infosys, ICICI Bank, JSW Steel, HDFC and Tata Consultancy Services. This could result in outflow worth $155 million, $134 million, $94 million, $80 million, $71 million, and $61 million, respectively