Indian stock market is expected to see inflows worth more than $2 billion on Friday in FII passive flows following the adjustments to the MSCI Global Standard Index and MSCI India Smallcap Index. In its May 2024 review, MSCI added 13 stocks and removed three from the MSCI Global Standard Index. The quarterly rebalancing was announced on May 15 and comes into effect on May 31.
The global index provider has included , Sundaram Finance, NHPC, , , Bosch, , Solar Industries, , Mankind Pharma, , and Thermax in the MSCI Global Standard Index. PB Fintech is estimated to receive the highest inflow worth approximately $283 million, followed by Sundaram Finance at $243 million, as per data by Nuvama Institutional Equities. Indus Towers, Phoenix Mills and NHPC are expected to see inflows in the range of $216 million - $234 million.
On the other hand, the exclusions from the index include Berger Paints, and , the parent company of fintech giant Paytm. These stocks are likely to witness outflows ranging between $70 million and $117 million. With 13 inclusions and 3 exclusions, the net stock count post-rejig will be 146 for India in the MSCI Standard/EM Index.
Additionally, 28 stocks will enter in the MSCI India Smallcap Index and 14 stocks will exit from the index. Key new entrants include Aditya Birla Sun Life AMC, Puravankara, DOMS Industries, Fashions, Gillette India, Juniper Hotels, RR Kabel, Greenlam Industries VA Tech Wabag, and Tips Industries. Stocks to be removed from the Smallcap.