MSCI Standard Index August 2024 review: Big announcements expected, Rs 9,806 crore likely inflow on inclusion of 6 stocks
In the upcoming August MSCI index rejig, Nuvama estimates an increase in weightage for HDFC Bank.
In the upcoming MSCI indices review slated to take place in August, Nuvama Research anticipates some big announcements. The entity has listed out six stocks that are likely to see an inclusion in the MSCI Global Standard Index along with the estimated inflow.
Stocks expected to see inclusion Inflows
Dixon Technologies Rs 2285 crore
Vodafone Idea Rs 2100 crore
Prestige Estates Rs 1543 crore
Oberoi Realty Rs 1310 crore
Schaeffler India Rs 1292 crore
Uno Minda Rs.1276 crore
Thus as per the research firm estimates, a total of Rs 9,806 crore could make its way into the Indian equities upon the completion of the rebalancing by August end.
Also, weightage for 3 stocks including HDFC Bank, Indus Towers and Mphas is seen to increase in the rejig. With expected inflows listed as below:
Weight up Inflows
HDFC Bank Rs.26942cr
Indus tower Rs.1101cr
Mphasis Rs.400cr
Currently, India’s weightage in the MSCI EM is at 19.2 per cent and the same is expected to scale to 20 per cent.
Further, while HDFC Bank stock is on investors’ radar, the note said that in case FIIs June shareholding in the stock decreases to 55.5 per cent to 5 per cent, the stock’s weightage will climb higher to 7.2-7.5 per cent from the earlier 3.8 per cent, resulting in an inflow of Rs 26,942 crore.
Additionally, the note pointed out that in case RVNL, Zydus Life, Oracle Financial Services, Alkem Laboratories, Linde India and Nykaa see sharp move to the tune of 10-35 per cent, they can also be included in the index.
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