TVS Motors, Varun Beverages among 5 stocks in contention for inclusion in MSCI indices

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26 Aug, 2025 12:21

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Varun Beverages Ltd, Bajaj Holdings and Investment Ltd, TVS Motors, ABB India and Tube Investments of India Ltd currently meet the criteria for inclusion in MSCI indices and see potential cumulative inflows of $685 million, according to data compiled by Edelweiss Alternative and Quantitative Research.

MSCI will meet next month for its semi-annual review and announce the results on November 11 with the related adjustments scheduled to take place on November 30.

Indian Hotels Co Ltd, Schaeffler India Ltd, Astral Ltd and Ashok Leyland Ltd are the other stocks that could be in contention for inclusion in the sought after indices, provided these stocks are able to meet the cut-off criteria set by MSCI by October 24, Edelweiss said.

Shares of Indian Hotels needs to move higher by approximately 6 percent by 23 October to be eligible for inclusion while Ashok Leyland, Astral and Schaefler need to move higher by 8-10 percent.

To qualify for the index, around 15% move is required for Schaeffler India, Astral Ltd and Ashok Leyland.

The five stocks that are currently eligible for inclusion in MSCI indices could see potential average inflows of around $140 million each, said Abhilash Pagaria, head of Edelweiss Alternative and Quantitative Research.

If the the current crop of stocks is considered for inclusion by MSCI then Tube Investments could see inflows of $180 million, Varun Beverages of $160 million, Bajaj Holdings of $110 million, TVS Motors of $130 million and ABB of $105 million, according to Pagaria.

Traders track potential inclusion and exclusions from the MSCI indices as they are widely tracked by global passive funds such as exchange-traded funds with billions of dollars in assets under management.

According to several studies, stocks that are selected for inclusion into MSCI indices tend to see sharp up move as speculators accumulate such stocks ahead of the inclusion date and later sell off their positions to global ETFs who have to buy those stocks.