INSUBCONTINENT EXCLUSIVE:
About 25 stocks will be added to the MSCI India Small-cap index
They will see like inflows of $3 million-$26 million, according to Nuvama | File image2 min read Last Updated Aug 13 2024 | 9:20 AM
IST
India's weight on the MSCI Global Standard index, which tracks emerging market stocks, has risen to another record high, which is
likely to attract inflows of about $3 billion into its equity markets.
India has further narrowed the gap with China on the key MSCI index
While China's weightage on the index will fall to 20.2 per cent from 25 per cent, India's weight will rise to 19.8 per cent from 19.2
The changes in the index weights will come into effect on after markets close on Aug
India's weight could likely rise above 20 per cent at end November.
This will lead to about $2.7 billion-$3 billion inflows into India,
Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research, said.
HDFC Bank, India's top private lender and the heaviest
stock in the benchmark NSE Nifty 50, will see an increase in its weightage, triggering potential inflows of $1.8 billion, Pagaria
said.
"Given the current pace and momentum in domestic equities, India could potentially cross 22 per cent weightage by year-end" on the
MSCI index, Pagaria said.
Bharti Airtel, Coal India, Mphasis are among the companies that will also see an increase in their weightage on
the index, while Maruti Suzuki India, LTIMindtree, Ambuja Cements, Adani Enterprises, Yes Bank and SRF will see a reduction.
Dixon
Technologies, Vodafone Idea, Oil India, Zydus Lifesciences, Rail Vikas Nigam, Prestige Estates Project and Oracle Financial Services will be
added to MSCI Emerging Markets index while Bandhan Bank will be excluded.
About 25 stocks will be added to the MSCI India Small-cap index
