MSCI adds five Indian stocks to key index; Nuvama sees $2.5 bln inflows (updated)

Alkem Laboratories

07/11/2024 06:40

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    By Bharath Rajeswaran
       Nov 7 (Reuters) - MSCI added five Indian companies to
its Global Standard Index late on Wednesday, a move that
brokerage Nuvama said would lift the country's weightage on the
index to 20%, further narrowing the gap with China.
    MSCI said there would be 156 Indian stocks in the index, but
that is only one-fourth of China's 598, signalling scope for
further inclusion of Indian stocks on the index. 
    The changes will take place after the markets close on Nov.
25, MSCI said.
    The inclusion of the stocks will lift India's weightage in
the index to a record 19.8% from 19.3% earlier, narrowing the
gap with China, which has slipped to 26.8% from 27%, Nuvama
Alternative and Quantitative Research estimated.
    It will also likely attract $2.5 billion in passive inflows
into India's equity markets, Nuvama said.
    China has the highest weightage in the MSCI Global Standard
index, while India has been in second place since the end of
2021. 
    Air conditioner maker Voltas  VOLT.NS , realty developer
Oberoi Realty  OEBO.NS , stock exchange operator BSE  BSEL.NS ,
Kalyan Jewellers  KALN.NS , and drug maker Alkem Laboratories
 ALKE.NS  are the latest additions to the index.   
    Indian markets saw inflows of about $3 billion into equities
after the previous MSCI rebalancing in August when seven stocks
were added.
    "We remain extremely bullish on India, especially with
active participation from mutual funds and high net worth
individuals (HNIs)/retail investors, and anticipate many more
inclusions in the emerging markets index," said Abhilash
Pagaria, head of Nuvama research.
    Seven existing stocks, including top private lender HDFC
Bank  HDBK.NS  and Tata Power  TTPW.NS , saw an increase in
their weightage.
    HDFC Bank is now the highest-weighted Indian stock in the
MSCI indices at 7.08%, surpassing Reliance Industries'  RELI.NS 
6.08%.
    No Indian companies have been removed from the MSCI Global
Standard Index so far in November. 
    Additionally, around 13 firms, including Eureka Forbes
 EURK.NS , Indegene  INEG.NS , and PC Jeweller  PCJE.NS , were
added to the MSCI Small Cap Index, bringing the total number of
small-cap stocks to 525.

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Potential inflows after MSCI's November rejig    https://reut.rs/4fzgJ7B
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 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Abinaya Vijayaraghavan)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))