MSCI rejig on Tuesday, February 13. $1 billion inflows likely in Indian stock market, says Nuvama

Global index aggregator MSCI will be announcing its February 2024 restructuring on Tuesday at around 3:30 am IST and any changes will be adjusted on February 29, 2024. As per Nuvama Alternative & Quantitative Research calculation, the domestic stock market could see close to $1bn of passive foreign institutional investor (FPI) inflow .

Nuvama said India currently holds approximately 17.8 per cent representation in the MSCI EM Index, and following the February rejig, it anticipates India's representation to move beyond 18.5 per cent.

The domestic brokerage had in an earlier note suggested Jindal Stainless Ltd, Punjab National Bank and BHEL as high convictions for inclusion in MSCI Global Standard index. It saw Union Bank Ltd India and Oberoi Realty as having border line chances of MSCI Standard index inclusion. It expected chances of exclusion of Indraprastha Gas Ltd from MSCI Standard index.

In the MSCI Smallcap index, Nuvama expected inclusion of IREDA, Cello World, Jaiprakash Associates Ltd, RR Kabel Ltd, Honasa Consumer, Signatureglobal Ltd and Swan Energy Ltd.

Besides, it expected Ethnos Ltd, DB Realty, CSB Bank, Dhanuka Agritech Ltd and Kesoram Industries Ltd, among others, to see inclusion in MSCI Smallcap index.

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