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A key highlight of this rejig will be HDFC Bank, whose weight in the index is set to increase, drawing significant attention
Stocks such as BSE, Voltas, Alkem Laboratories, Kalyan Jewellers, and Oberoi Realty will be included in the MSCI
MSCI November ReJig Today: The quarterly reshuffling of the Morgan Stanley Capital International (MSCI) indices is scheduled for later today, November 25. Analysts predict that Indian equities will see a net inflow of approximately $2.5 billion in passive FII flows. A key highlight of this rejig will be HDFC Bank, whose weight in the index is set to increase, drawing significant attention.
Following the adjustments, India’s stock count in the MSCI Standard/EM Index will rise to 156, with five new inclusions and no deletions. Additionally, 13 stocks will be added to the Smallcap Index, bringing India’s total to 525 in that segment.
“India has once again reached a major milestone in this rejig, with its representation in the MSCI EM Index increasing from 19.3 per cent to around 19.8 per cent. This increase in weight is the largest among all emerging markets in this reshuffle,” said Nuvama Institutional Equities.
China currently holds the highest share in the MSCI EM Index, with a 27 per cent weight and 598 stocks. In contrast, India’s weight stands at 19.3 per cent, with 151 constituents.
Stocks such as BSE, Voltas, Alkem Laboratories, Kalyan Jewellers, and Oberoi Realty will be included in the MSCI Global Standard Index after this update.
Voltas is expected to draw the largest inflow, surpassing $300 million, while BSE could see inflows close to $260 million, according to Nuvama. Other companies, including Kalyan Jewellers, Oberoi Realty, and Alkem Laboratories, are anticipated to receive passive inflows of $241 million, $215 million, and $201 million, respectively.
Ahead of the rebalancing on November 25, shares of Voltas, BSE, Kalyan Jewellers, and Oberoi Realty were up between 2-5 per cent.
Although Nuvama Institutional Equities had expected Adani Energy to be included, MSCI explained its decision not to include the stock, citing concerns over the stock’s free float. Additionally, the float for two other Adani Group companies, Adani Green Energy and Adani Power, has been reduced.
The spotlight will be on HDFC Bank, with an expected weight increase that could result in inflows of around $1.88 billion. MSCI had previously announced the weight adjustment for HDFC Bank during the August rejig, opting to implement the change in two phases instead of a one-time adjustment.
