MSCI February 2024 rejig to come into effect today after market hours; Paytm's weightage to be increased

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. The reshuffling in the index is set to result in a net inflow of Rs 10,000 crore.
 
The changes will come into effect from today after market hours.
 
As per the MSCI February rejig, five stocks will make their entry into the MSCI Global Standard Index, including PNB, BHEL, NMDC, Union Bank of India, and GMR Airports.
 
Further, the inflow expected from the inclusion is as follows:
 

 
Earlier, Nuvama Institutional Equities, in its report dated February 13, said that the inclusion in the index is broadly in line with predictions.
 
Additionally, in the index, while weightage for 12 stocks has been increased for a few names, including the likes of Paytm, Zomato, DLF, MRF, Indigo, and Dr. Reddy's, two stocks, namely Jio Financial and Container Corporation of India, saw a decline in weightage.
 
In the MSCI Smallcap index, 27 stocks will be included, along with some of the newly listed stocks, such as Cyient DLM, Cello World, Honasa Consumer, and others.
 
However, the stocks that will no longer be its constituents are GMR Aiports, Prestige Estates, Torrent Power, RVNL, Barbeque Nation, and Privi Specialty.
 
"With a consistent flow from DII and now if steady FII participation resumes, there is potential for India to surpass a 20% weight in the MSCI EM Index by early 2024 itself," noted the Nuvama report.