RIL, ICICI Bank, Infosys, HDFC Bank shares to see outflows on MSCI weightage cuts

Shares of Reliance Industries Ltd (RIL), ICICI Bank Ltd, Infosys Ltd and HDFC Bank Ltd could see passive outflows in the $100-200 million range following the changes to MSCI Global Standard index weightages. According to Nuvama Alternative & Quantitative Research, RIL may see $192 million in passive inflows. It would be followed by ICICI Bank that may see $132 million inflows. Infosys ($124 million) and HDFC Bank ($114 million) may also see passive outflows in excess of $100 million, as per Nuvama.

Tata Consultancy Services Ltd (TCS) shares are expected to attract $83 million passive outflows. Axis Bank shares could see $64 million outflows, as per Nuvama. Bharti Airtel Ltd , Larsen  & Toubro Ltd and Hindustan Unilever Ltd (HUL) may see outflows of $60 million, $57 million and $56 million respectively. Bajaj Finance Ltd and Kotak Mahindra Bank may see outflows in excess of $50 million each.

Mahindra & Mahindra Ltd, Maruti Suzuki India Ltd, ITC Ltd, Tata Motors Ltd, HCL Technologies Ltd, Asian Paints Ltd, Titan Company Ltd and Sun Pharmaceutical Industries are some other names that may see outflows because of the MSCI rejig.

NTPC, UltraTech Cement, Nestle India, Avenue Supermarts, SBI Life Insurance, Grasim Industries, Adani Green Energy and ICICI Lombard are among other stocks that may see outflows, though insignificant.   

Net-net, a few stocks such as Jio Financial Services, Vedanta, REC, HAL and PFC are seen attracting inflows on increase in MSCI weightages. The adjustments will take place on November 30.

Nuvama expects India to attract a total $1.5 billion in passive inflows. It noted that India's total stock count would rise to 131 and that its overall weight in the EM pack moved close to 16.3 per cent against the prevailing 15.9 per cent.

"India's representation in the EM index would reach an all-time high, marking a significant increase over the past three years, almost doubling its weight," Nuvama said.

Nuvama said The small-cap index would undergo notable changes, in-line with its estimates.

Meanwhile, MSCI has added nine stocks such as APL Apollo Tubes, Suzlon Energy, Persistent Systems and IndusInd Bank and MSCI Global Standard Index. This was largely in line with estimates.

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