MSCI quarterly rebalance to trigger $2 billion inflows on May 31; Torrent Power, PB Fintech, Indus Towers in focus

The MSCI Smallcap Index will also see changes, as a result of which, it will include 497 listed entities from India.

MSCI's quarterly rejig will come into effect following the market close on May 31, leading to potential inflows of around $2 billion into the Indian equity markets.

MSCI's quarterly rebalancing will lead to 13 new stocks being added to the MSCI Global Standard Index, while three stocks will be excluded.

Bosch, Canara Bank, Indus Towers, Jindal Stainless, JSW Energy, Mankind Pharma, NHPC, PB Fintech, Phoenix Mills, Solar Industries, Sundram Finance, Thermax and Torrent Power are among the new stocks which will be added.

As a result, the MSCI index will include up to 146 Indian counters, compared to 136 names earlier. India's weight in the MSCI EM Index will rise to 18.8 percent.

Also Read | MSCI May rejig could attract $2 billion inflows; Indus Towers, PB Fintech, Mankind Pharma likely inclusions

Among these, Nuvama Institutional Equities anticipates the maximum flow coming in for Indus Towers at $224 million, followed by PB Fintech and Phoenix Mills at $223 million and $213 million, respectively. For others, flows of around $144-207 million are estimated.

On the other hand, Thermax is seen sitting on the borderline to receive an inclusion in the MSCI index, Nuvama believes. If its inclusion goes through, the stock can see inflows worth $139 million.

Paytm, Indraprastha Gas, and Berger Paints are stocks will be excluded. If it does happen, these stocks can see combined outflows of around $283 million.

The MSCI Smallcap Index will also see changes, as a result of which, it will include 497 listed entities from India.

As for the MSCI Small-cap index, stocks such as Waaree Renewable, Vedant Fashions, Va Tech Wabag, RR Kabel, Sanghvi Movers, among others are to receive an inclusion.

On the flipside, Tatva Chintan Pharma, Borosil, Sharda Cropchem, and Dreamfolks Services are to be excluded.

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