IREDA shares may enter MSCI Smallcap index; PNB, BHEL, Jindal Stainless may join Global Standard index: Nuvama
An inclusion is seen brining in $146 million in passive inflows each for BHEL and Jindal Stainless while PNB is expected to attract $146 million inflows. In the case of Union Bank, the stock may attract $133 million inflows.
- Jan 18, 2024,
- Updated Jan 18, 2024 8:29 AM IST
Nuvama Institutional Equities says shares of Punjab National Bank (PNB), Bharat Heavy Electricals Ltd (BHEL) and Jindal Stainless Ltd are among its high conviction MSCI Global Standard index incusion bets while it is borderline chances of Union Bank of India and Oberoi Realty making it in the February list, whose cut off date begins today. It will extend until January 31. The official announcement is likely on February 13 and the adjustment will take place on February 29.
An inclusion is seen brining in $146 million in passive inflows each for BHEL and Jindal Stainless while PNB is expected to attract $146 million inflows. In the case of Union Bank, the stock may attract $133 million and Oberoi Realty $129 million passive inflows. If Union Bank and Oberoi Realty misses inclusion this time, traders may look for their inclusions in May review, Nuvama said.
Abhilash Pagaria, Head Nuvama Alternative & Quantitative Research said: "Based on my experience, I anticipate the cut-off within the next three days itself."
Pagaria's Preliminary calculations suggest that India could witness a close to $500 million inflow in February rejig due to the rebalance. India's current representation in MSCI EM is at an all-time high of 17.9 per cent, featuring 131 members, he noted.
Pagaria does not see any exclusions, and the only name on his radar is Indraprastha Gas Ltd (IGL), "which till now appears safe from elimination." If this stock gets excluded, Pagaria sees $114 million in potential passive outflows.
Meanwhile, IREDA, CELLO World, Jaiprakash Associates Ltd, RR Kabel Ltd, Honasa Consumer Ltd, Signatureglobal (India) Ltd and KPI Green Energy are some of the stocks seen as high conviction MSCI Smallcap index inclusion. Others included Swan Energy Ltd, Ethos Ltd, DB Realty Ltd and RattanIndia Power among others.
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Nuvama Institutional Equities says shares of Punjab National Bank (PNB), Bharat Heavy Electricals Ltd (BHEL) and Jindal Stainless Ltd are among its high conviction MSCI Global Standard index incusion bets while it is borderline chances of Union Bank of India and Oberoi Realty making it in the February list, whose cut off date begins today. It will extend until January 31. The official announcement is likely on February 13 and the adjustment will take place on February 29.
An inclusion is seen brining in $146 million in passive inflows each for BHEL and Jindal Stainless while PNB is expected to attract $146 million inflows. In the case of Union Bank, the stock may attract $133 million and Oberoi Realty $129 million passive inflows. If Union Bank and Oberoi Realty misses inclusion this time, traders may look for their inclusions in May review, Nuvama said.
Abhilash Pagaria, Head Nuvama Alternative & Quantitative Research said: "Based on my experience, I anticipate the cut-off within the next three days itself."
Pagaria's Preliminary calculations suggest that India could witness a close to $500 million inflow in February rejig due to the rebalance. India's current representation in MSCI EM is at an all-time high of 17.9 per cent, featuring 131 members, he noted.
Pagaria does not see any exclusions, and the only name on his radar is Indraprastha Gas Ltd (IGL), "which till now appears safe from elimination." If this stock gets excluded, Pagaria sees $114 million in potential passive outflows.
Meanwhile, IREDA, CELLO World, Jaiprakash Associates Ltd, RR Kabel Ltd, Honasa Consumer Ltd, Signatureglobal (India) Ltd and KPI Green Energy are some of the stocks seen as high conviction MSCI Smallcap index inclusion. Others included Swan Energy Ltd, Ethos Ltd, DB Realty Ltd and RattanIndia Power among others.
Also read: Stock recommendations by analyst for Jan 18, 2024: Welspun Corp, L&T Fin and Apollo Hospitals
Also read: GIFT Nifty down 39 points: Asian markets, crude oil prices, Q3 results, dollar movement & more