MSCI Morgan Stanley Capital International, operating the MSCI World, MSCI All Country World Index, and MSCI Emerging Markets Indices, among others, announced its February 2024 rejig on February 12. After the re-balancing, India’s weight in the MSCI EM index, which currently stands at 17.9 per cent will increase to more than 18.2 per cent, marking a historic high

MSCI Global Standard Index rejig

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In the MSCI Global Standard Index, which will see the adjustment as of the close of February 29, 2024, five Indian names are set to be included. They are PNB, BHEL, NMDC, Union Bank of India, and GMR Airports.

GMR Airports is said to be the surprise entry. The report by Nuvama Institutional Equities said that the stock had been its conviction entrant for the May review.

The rejig is expected to result in a net inflow of Rs 10,000 crore.

MSCI India Domestic Index rejig

10 stocks have been added to the index with no deletions. The securities added include BHEL, Canara Bank, Cummins India, Embassy Office Park REIT, Macrotech Developers, MRF, Persistent Systems, PNB, Suzlon Energy, and Tata Motors.

MSCI India Domestic Small Cap index rejig

The rejig made in the index will be effective as of the close of February 29. In the index, a total of 28 securities are added, while 12 have seen an exclusion.

The list of stocks included is Balmer Lawrie, Banco Products India, Cello World, Cyient DLM, Dhanuka Agritech, DB Realty, Ethos, Healthcare Global, Hemisphere Properties, Honasa Consumer, IIFL Securities, Indian Renewable Energy, ITD Cementation, J. Kumar Infra, Jaiprakash Associates, Jupiter Lifeline, Kesoram Industries, KPI Green Energy, MSTC, Netweb Technologies, Paisalo Digital, RattanIndia Power, Sandur Manganese, SBF Finance, Spicejet, Swan Energy, TARC, and Vedant Fashions.

However, the stocks that will no longer be its constituents are Cummins India, BHEL, Barbeque Nation, L&T Technology, MRF, Oberoi Realty, OFSS, Prestige Estates, Persistent Systems, Privi Specialty, Solar Industries, and Suzlon Energy. According to calculations by Nuvama Alternative & Quantitative Research, India could witness more than USD 1.2 billion in FII passive inflow (Std + Smallcap Index).