In its August review of indices, index provider MSCI added eight Indian scrips to the MSCI Global Standard index. Power Finance Corporation, REC, HDFC AMC, IDFC First Bank, Astral, Cummins India, Supreme Industries and Ashok Leyland are the scrips included following the review, while ACC is the sole stock that has been excluded. These changes go into effect 1 September onwards.
Based on data from Nuvama Alternative and Quantitative Research, PFC and HDFC AMC are anticipated to receive inflows of $203 million and $153 million respectively. Conversely, IDFC First Bank is projected to garner inflows of $204 million, whereas Ashok Leyland, Cummins India, and Astral are expected to draw inflows amounting to $196 million, $173 million, and $170 million, as per their estimates.
PI Industries was the sole firm that saw an increase in its weightage to 0.38%. Reliance Industries, ICICI Bank, Infosys, HDFC Bank, Tata Consultancy, HUL, Axis Bank, Kotak Mahindra Bank, Bajaj Finance, Bharti Airtel, L&T, Wipro, M&M, ITC, Maruti Suzuki, Asian Paints, UPL, Sun Pharma, HCL Technologies, Titan, Pidilite Industries, TII and CG Power also saw their weightage reduce.
November review
Nuvama suggested that Polycab qualifies for entrance into the index in the November review. For Lodha and Paytm to be included, the scrips need a move over around 15% by mid-October. The required up move depends on the revised float considered by Nuvama. If the float moves up by 10, less than 10% is needed, and if it moves up by 5, a 20% up-move is needed.
Additionally, as per today’s announcement in the August review, Tata Communications is slated for exclusion from the MSCI Small Cap Index. However, a substantial surge of approximately 15% to 20% would position the stock for direct inclusion in the MSCI Standard Index for the November review, added the brokerage.