MSCI Rejig: BSE, Adani Energy, Voltas among six stocks likely to be included in India Standard Index

Adani Energy, Voltas and BSE shares are among six stocks that are expected to be included in the MSCI India Standard Index during its November rebalancing.

According to brokerage firm JM Financial, based on the current prices, the equity shares of BSE, Voltas, Adani Energy Solutions, Alkem Laboratories, Oberoi Realty and Kalyan Jewellers India are key contenders for the inclusion in the Index.

The MSCI India Standard Index rebalancing is scheduled to be announced on November 6, post the market hours. The changes will be effective from November 26.

The MSCI India Standard Index tracks the performance of large and mid-cap segments within the Indian equity market. Comprising 151 constituents, it offers a broad representation of the market, covering approximately 85% of the Indian equity universe.

Estimated Inflows

JM Financial expects BSE shares to receive the highest chunk of inflows amounting to $312 million due to inclusion in the MSCI India Standard Index as a part of November rebalancing.

This will be followed by Voltas shares with estimated inflows worth $241 million and Adani Energy Solutions with $208 million inflows.

Alkem Laboratories is likely to attract $189 million of foreign fund inflows, while Oberoi Realty and Kalyan Jewellers are estimated to see inflows at $137 million and $130 million, respectively.

HDFC Bank Weight Increase

In August, MSCI announced an increase in the weightage of HDFC Bank shares in its indices in two tranches. The first one happened in August rebalancing, while the second is set to take place after the November review, provided the foreign headroom remains at least 20%.

The September shareholding pattern of HDFC Bank showed its FII headroom remained safely above 20%. As a result, HDFC Bank stock is likely to see the second phase of weight increase in MSCI November 2024 rejig.

This is estimated to lead to approximately $1.8 billion worth inflows in HDFC Bank, according to estimates by Nuvama Alternative & Quantitative Research.

Meanwhile, HDFC Bank stock price has failed to give any significant returns this year. The stock has gained over 7% in three months, but is flat year-to-date (YTD). In the past one year, HDFC Bank share price has gained more than 13%.

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