Coforge, Fortis Healthcare, Paytm among 8 stocks likely to enter MSCI India index in March rejig

If included, GE Vernova TD India and Uno Minda will likely see the least inflows, around $104 million each.

Coforge, Fortis Healthcare, and Coromandel International are among the eight stocks likely to be included in MSCI India Standard Index in February, JM Financial Institutional Securities has said.

MSCI is set to unveil alterations to the MSCI India Standard indices on February 11, with the adjustments slated to come into effect on March 3, it said.

Based on the current price of the eight stocks, the index will see a total inflow of $1.3 billion.

The brokerage added that the probability for Coforge, Fortis Healthcare, One97 Communications and Coromandel International to be added to the list is high.

On the other hand, Federal Bank, Blue Stat, GE Vernova TD India and Uno Minda have a lower probability of joining the index.

Coforge is likely to see the most flows, bringing around $293 million, followed by Fortis Healthcare with $176 million, Paytm with $169 million, Coromandel with $156 million and Federal Bank with $137 million.

GE Vernova TD India and Uno Minda will likely see the least inflows, around $104 million each.

Follow our live blog to catch all the updates

Further, the current weight of IndusInd Bank will be doubled in the index, which will result in passive flows to the tune of $143 million for 13.2 million shares.

According to the bank’s latest shareholding details, its FII stake has decreased to 46.6 percent in December from 55.5 percent in the September quarter. This reduction means that the foreign headroom now significantly exceeds the 25 percent threshold, with MSCI currently applying a half-float factor.

Following the recent FII sell-off, the foreign headroom remains comfortably above the 25 percent level, which could potentially lead to a doubling of the bank’s MSCI weight in the February 2025 review, with an increase of around 50 basis points.

This potential rise in weight is expected to attract inflows of around $250 million to $300 million, which could influence the stock over the next 3 to 5 trading days, according to Nuvama Alternative Research. If this occurs, the rebalancing, along with the associated inflows, will be reflected on February 28.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.