Key candidates for inclusion in the MSCI India Standard Index include BSE, Voltas, Adani Energy Solutions, Alkem Laboratories, Oberoi Realty, and Kalyan Jewellers as part of the MSCI reshuffle.
During the November rebalancing of the MSCI India Standard Index, Adani Energy, Voltas, and BSE shares are likely to be among the six stocks to be added.
JM Financial, a brokerage firm, has identified BSE, Voltas, Adani Energy Solutions, Alkem Laboratories, Oberoi Realty, and Kalyan Jewellers India as top candidates for inclusion in the Index, considering their current stock prices.
The announcement for the MSCI India Standard Index rebalancing is set to take place after market hours on November 6, with the modifications coming into effect on November 26.
The MSCI India Standard Index monitors the large and mid-cap segments’ performance in the Indian stock market. With 151 components, it provides a comprehensive overview of the market, encompassing around 85% of the Indian equity landscape.
Estimated Inflows
JM Financial anticipates that BSE shares will attract the largest portion of inflows, totaling $312 million, following their inclusion in the MSCI India Standard Index during the November rebalancing.JM Financial projects that BSE shares will attract the largest portion of inflows, totaling $312 million, as they are included in the MSCI India Standard Index during the November rebalancing.
Anticipated capital injections of $241 million are expected to flow into Voltas shares, followed by Adani Energy Solutions, which is projected to receive $208 million in investments.
Foreign investments totaling $189 million are anticipated to flow into Alkem Laboratories, with projected inflows of $137 million and $130 million expected for Oberoi Realty and Kalyan Jewellers, respectively.
HDFC Bank Weight Increase
MSCI disclosed in August a rise in the allocation of HDFC Bank stocks within its indices through two separate phases. The initial adjustment was carried out during the August rebalancing, with the subsequent one scheduled post the November evaluation, subject to a minimum foreign headroom of 20%.
The September shareholding pattern of HDFC Bank showed its FII headroom remained safely above 20%. As a result, HDFC Bank stock is likely to see the second phase of weight increase in MSCI November 2024 rejig.
Nuvama Alternative & Quantitative Research estimates suggest that this could result in around $1.8 billion flowing into HDFC Bank.
Over the course of this year, HDFC Bank’s stock price has shown a lackluster performance, failing to deliver noteworthy returns. Despite a modest increase of 7% in the last three months, the stock remains stagnant year-to-date. Looking back over the previous year, HDFC Bank’s share price has recorded a growth exceeding 13%.
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