MSCI, the global index aggregator, is gearing up for a rebalance of its indices on May 15, with India poised to witness the addition of more than 10 stocks. This move is anticipated to bring in around $2 billion in passive Foreign Institutional Investor (FII) inflows by May 31, according to projections by Nuvama Alternative and Quantitative Research.
As of May 13, 2024, India’s weight in the MSCI Emerging Market Index has surged to approximately 18 percent, a significant increase from around 8 percent in early 2020.
Nuvama remains optimistic about India’s ascent within the EM landscape, stating, “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 boasts 136 stocks included in the MSCI Standard Index/EM Index, and Nuvama foresees this number nearing 150 following the upcoming May review.
Nuvama’s projections for the MSCI Standard index include the inclusion of Indus Towers, Policy Bazaar, Phoenix Mills, Sundaram Finance, Solar Industries India, NHPC, Bosch, Jindal Stainless, Torrent Power, Mankind Pharma, JSW Energy, and Canara Bank. Conversely, it expects One 97 Communications (Paytm), Berger Paints, and Indraprastha Gas to be excluded, while Thermax remains on the brink.
In the MSCI SmallCap index, Nuvama predicts the inclusion of Waaree Renewable, Vedant Fashions, Va Tech Wabag, RR Kabel Ltd, Sanghvi Movers, Doms Industries, Time Technoplast, Dynamatic Tech, Inox India Ltd, Transformers & Rectifiers, Puravankara, Juniper Hotels, and Tips Industries. Meanwhile, it anticipates Tatva Chintan, Borosil Ltd, Rajratan Global, Sharda Cropchem, and Dreamfolks Services to be excluded.
