Canara Bank, NHPC, Indus Towers: Stocks that may be added to MSCI Global Standard Index following May review today

MSCI, the global index provider, as notified earlier will announce the rejig in its indices- May 2024 Index Review today (May 14, 2024) and the changes will come into effect from May 31. Given the rejig,  Nuvama Alternative and Quantitative Research expects Indian markets to witness foreign inflows to the tune of $2 billion. 

Also, amidst the rejig, India’s weight in MSCI is seen to increase from 18 per cent to 20 per cent.

Further in the MSCI Standard Index, the brokerage expects the count of Indian companies to increase to 150 from the earlier136.

"We maintain our conviction that India's rise within the EM landscape will continue to surprise sceptics and reward proponents of the India Story. Currently, India has 136 stocks included in the MSCI Standard Index/EM Index, and we foresee this number nearing 150 following the upcoming May review," said Nuvama in its note on the rejig.

List of stocks that could be included in the MSCI Global Standard Index

Stocks that may see exclusion from the MSCI Global Standard Index

Stocks that may be included in MSCI Smallcap index

Stocks that may be ousted from the MSCI Smallcap Index

Tatva chintan, Borosil Ltd, Sharda Cropchem, Dreamfolks and Rajratan Global are some of the stocks expected to be excluded from the above stated index.

Additionally, Nuvama emphasized that considering the consistent inflows from DIIs and potential continuation of inflows from FIIs or foreign institutional investors, India’s weightage in the MSCI EM Index could surpass 20 per cent by the second half of the current year.