MSCI India August rejig in focus: Vi, Dixon Tech, RVNL among 7 entrants; Bandhan Bank to exit

HDFC Bank shares will see an increase in its weightage in the MSCI indices

India's MSCI August rejig will take place on August 30, expected to receive net passive FII inflow of over $4-4.5 billion. Around 7 stocks will be included in the MSCI India index, namely Dixon Tech, Vodafone Idea, Oil India among others.

According to Nuvama estimates, out of the 7 stocks - Dixon Tech will see the maximum inflows worth $313 million, followed by Vodafone Idea at $285 million, Oil India at $258 million, Zydus Lifesciences at $222 million, Rail Vikas Nigam at $212 million, Prestige Estates at $178 million, and Oracle Financial at $172 million.

However, Bandhan Bank will be excluded from the MSCI India index, seeing an outflow of $117 million.

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On the other hand, HDFC Bank shares will see an increase in its weightage in the MSCI indices but that will take place in two tranches. The first one will happen after the current August review, while the second will take place after the November review, provided the foreign headroom remains at least 20 percent. The first round weightage is expected to attract inflows worth $1.5 billion, according to Nuvama estimates.

Meanwhile, around 27 stocks will be included in the MSCI Smallcap August rejig. This would include Bandhan Bank, Go Digit General Insurance, Protean Egov Tech, Aurionpro Solution, Sudarshan Chemical, Shakti Pumps India, Bharat Bijlee, Bajaj Hindusthan Sugar, Max Estates, GMR Power & Infra, Inox Wind, Sharda Motor, Garware Hitech Films, among others.

Some of the stocks being excluded from the MSCI Smallcap August rejig will be Dixon Tech, IREDA, Cochin Shipyard, HUDCO, Network18, Jaiprakash Associates.

Besides, IRB Infra, Star Health, Timken India, Nippon Life will be among 27 others to have their weight increased in the MSCI Smallcap index rejig, added Nuvama analysts.

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