Synopsis
The upcoming MSCI index review is projected to infuse Indian stocks with up to $1 billion, set to take place post-market hours on Friday. Key stocks, including Hyundai and Zomato, are anticipated to experience increased volatility.Key Takeaways
- MSCI index review could bring up to $1 billion inflow.
- Hyundai Motor India is the only large-cap Indian stock added.
- IndusInd Bank expected to receive the highest inflow.
- India’s weightage in MSCI Global Standard Index rises.
- Market volatility is anticipated post-restructuring.
Mumbai, Feb 27 (NationPress) The February index review by MSCI Inc. is scheduled to take effect after market hours on Friday, which could lead to a net passive inflow of up to $1 billion into Indian stocks.
This adjustment is likely to induce greater volatility in the stock market, particularly for firms impacted by these changes.
As per data from IIFL Capital, the projected inflow from these adjustments is estimated to be between $850 million and $1 billion.
The notable aspect of the review is the addition of Hyundai Motor India Limited as the sole Indian large-cap stock included in the MSCI Global Standard Index.
The firm, which debuted on the stock market in November 2024, is anticipated to experience an inflow of $257 million, representing the largest weight increase among Indian stocks.
All attention will now be on Hyundai Motor India, as it is the only Indian large-cap stock included in the MSCI Global Standard Index in this February review.
In addition to these changes, the review has resulted in an increase in the weightage of multiple Indian stocks, further boosting the expected inflow.
IndusInd Bank Ltd. is projected to receive the highest inflow of $258 million, trailed by Zomato Limited ($107 million), Varun Beverages Limited ($96 million), Mankind Pharma Limited ($48 million), and Torrent Pharmaceuticals Limited ($43 million).
Additional stocks such as PB Fintech Limited, Adani Enterprises Limited, and Voltas Limited will also see an increase in their weightage.
HDFC Bank Limited now holds the highest weightage among Indian stocks in the MSCI index, followed by ICICI Bank Limited, Infosys Limited, and Bharti Airtel Limited.
In the small-cap category, MSCI has added 19 Indian stocks while eliminating an equivalent number.
Some significant additions include Jyoti CNC Automation Limited, Ola Electric Mobility Limited, CarTrade Tech Limited, Afcons Infrastructure Limited, and TBO Tek Limited.
As a result of these changes, India’s weightage in the MSCI Global Standard Index will rise from 18.8 percent to 19 percent.
However, the country has dropped one rank to third place in terms of weightage among emerging markets.
