Morgan Stanley Capital International (MSCI) will announce the results of its quarterly review on Tuesday, and as per the Nuvama Alternative & Quantitative Research, the public sector companies are ruling the list of probable inclusions to MSCI Standard index.
Union Bank of India, NHPC, NMDC, BHEL, Punjab National Bank are likely to be added to MSCI Standard index, as per the calculations done by the firm.
This will bring inflows worth USD 40 million, USD 223 million, USD 186 million, USD 156 million, and USD 180 million respectively, to these stocks.
NHPC’s free float market capitalisation increased after the government pared 3.5 percent in an offer for sale in January. “NHPC Offer for Sale (OFS) concluded on the second day of the cutoff date. Considering day two onwards, it’s highly likely to make the cut,” said Nuvama Research.
Along with additions to MSCI Smallcap index, Indian equity markets are set to see about USD 800 million- USD 1 billion of inflows on February 29 when the adjustments are made by funds and ETFs benchmarked against MSCI indices.
Also, several recently listed stocks will likely be making it to MSCI Smallcap index including Cello World, Mamaearth and Honasa Consumer. This will bring inflows worth USD 12 million, USD 7 million and USD 5 million in these stocks, respectively.
As per the report, the other probable inclusions are Jaiprakash Associates, RR Kabel, Signature Global, Paisalo Digital, RattanIndia Power, KPI Green Energy, Swan Energy, MSTC, Protean e-gov, Ethos, J Kumar Infraprojects, DB Realty, SBFC Finance, Sandur Manganese, IIFL Sec, Aurionpro Solutions, Dhanuka Agritech, Netweb Tech, Inox Wind, Kesoram Inds, Fedbank Financial, Spicejet and Jupiter Life.
In 2023, India’s stock count in the MSCI Standard index rose to 131, with the inclusion of a net of 17 Indian stocks over the past four reviews. This marks an improvement from 2022, where only a net of 9 Indian stocks were included, Nuvama Research added.