Summary of this article
LIC, Coforge, Adani Green and Meesho join MSCI Standard Index
Coforge could attract the highest estimated inflow of $630 million
MSCI Smallcap Index adds 11 stocks and removes 29 companies
Index provider MSCI released its November index review early on November 12. Four Indian companies will be added to the MSCI Global Standard Index. These include Life Insurance Corporation of India (LIC), Coforge, Adani Green Energy and Meesho. PI Industries is the only deletion. The rebalancing will come into effect on November 30.
Nuvama Alternative & Quantitative Research estimates Coforge could attract the highest inflow of $630 million among the stocks added to the MSCI index. LIC is expected to see inflows of $468 million, followed by Adani Green at $348 million and Meesho at $307 million. On the other hand, PI Industries could face outflows of around $119 million.
Eleven stocks already part of the index are also expected to see higher weightage, which could bring in additional inflows ranging from $10 million to $97 million each, according to Nuvama. Billionbrains Garage Ventures, the parent of Groww, is likely to attract the highest inflow of $97 million, followed by Lenskart at $85 million and JSW Steel at $69 million. Adani Energy Solutions could see inflows of $60 million, Coal India $52 million and Paytm $48 million. Bharat Forge is estimated to attract $24 million, Oracle Financial Services Software $23 million, Zydus Lifesciences and Vedanta $20 million each, and Bosch $10 million.
Nine stocks are expected to see a reduction in their weightage, which could lead to outflows. NTPC is likely to face the highest outflow of $97 million, followed by Eicher Motors at $65 million and Grasim at $64 million. REC could see outflows of $45 million, while Hindustan Aeronautics is estimated to see $44 million. Cipla may see outflows of $38 million, GAIL $36 million, MRF $30 million and Siemens India $10 million.
The MSCI India Smallcap Index will add 11 stocks, including PI Industries, Shadowfax Technologies, Apollo Micro Systems, HUDCO, Diamond Power Infra, Aequs, Viyash Scientific, E2E Networks, SG Mart, Molbio Diagnostics and Axiscades Technologies. Nuvama estimates that these stocks could attract inflows ranging from $0.2 million to $18 million.
On the other hand, 29 stocks will be removed from the Smallcap Index. Coforge is the biggest name among them as it moves up to the Standard Index. Its removal from the Smallcap Index could lead to outflows of around $97 million, according to Nuvama. The remaining 28 stocks are estimated to see outflows ranging from $1.8 million to $5 million each.
These include HCC, Praj Industries, Arvind Fashions, ION, Happiest Minds Technologies, India Cements, TTK Prestige, Shakti Pumps, Aditya Birla Fashion, Sandur Manganese & Iron Ores, Ashapura Minechem, Tata Teleservices Maharashtra, Borosil Renewables, Maharashtra Seamless, Jupiter Wagons, Senco Gold, GR Infra, MIDHANI, Transport Corporation of India, Signatureglobal, Avenuesai, Triveni Engineering & Industries, Campus Activewear, Ahluwalia Contracts, PNC Infratech, CSB Bank, Inox Green Energy and GSPL Transmission.
