MSCI rejig: Kotak Bank shares may see $810 million inflows, YES Bank, Zomato other key beneficiaries

The changes that MSCI made to its its Global Standard Indices in terms of weightages may results in net passive foreign inflows for $600-700 million for India, as per an estimate. A total of 15 domestic stocks including as Kotak Mahindra Bank, Maruti Suzuki, ONGC, UltraTech Cement and YES Bank would see inflows on increased weightages, analysts suggested.

Kotak Mahindra Bank's weight change may result in $810 million in inflows, said Nuvama Institutional Equities in a note. The stock was trading 0.27 per cent lower at Rs 1,952.80 on BSE.

As per Nuvama, Maruti Suzuki India will see $87 million in flows while oil refiner ONGC may see $74 million in flows. Maruti Suzuki shares were trading flat at Rs 9,261 while ONGC shares were trading 0.5 per cent lower at Rs 166.15.The MSCI passive trackers will implement changes on May 31.

Cement maker UltraTech Cement, the brokerage said, may attract $72 million inflows while aviation firm InterGlobe Aviation may receive 63 million in flows, the brokerage said. Shares of InterGlobe Aviation were up 0.35 per cent at Rs 2,259.30.

Zomato, NTPC, Power Grid, Siemens India, Mahindra and Mahindra may see $39-59 million inflows. SBI Card, Cipla, TVS Motor, YES Bank and Samvardhana Motherson may also see inflows, as per Nuvama.

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Earlier today, MSCI said India Standard Index will see three add and three deletes.  The Index Review price cut off date was April 18th (second day). Also, Adani group stocks Adani Transmission Ltd and Adani Total Gas Ltd took a beating, as index aggregator MSCI decided to exclude the two shares from its indices citing low free-float following its changes to Foreign Inclusion Factor (FIF).

As a result of these changes, "these two securities will no longer be eligible for inclusion in the MSCI Global Investable Market Indexes (GIMI) as the companies will not meet the relevant free float-adjusted market capitalization requirements," MSCI said.

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