MSCI adjustments take place today – Here are the stocks poised for significant flows

MSCI adjustments take place today - Here are the stocks poised for significant flows


The changes to the MSCI Global Standard Index, announced earlier this month, will see adjustments to their respective inclusions, exclusions and weightage adjustments on Friday, May 29.

As per the changes announced earlier, Federal Bank, MCX, NALCO, and Indian Bank are the four stocks that will be included in the Standard Index, while stocks like Hyundai Motor India, Jubilant Foodworks, Kalyan Jewellers India and Rail Vikas Nigam (RVNL) will be excluded from the index.

According to Nuvama Alternative & Quantitative Research, the inclusions will see potential inflows ranging from $200 million to over $400 million when the adjustments take place today.

Stock Inflow ($ Million)
Federal Bank 483
MCX 362
NALCO 328
Indian Bank 206

For stocks that will see an exclusion, the outflows are likely to range between $118 million to nearly $300 million.

Stock Outflow ($ Million)
Hyundai Motor India -278
Jubilant Foodworks -151
Kalyan Jewellers -131
RVNL -118

In addition, stocks like Adani Power, BPCL, Nykaa, Trent and Oracle Financial will see an increase in their weightage.

Stock Inflow ($ Million)
Adani Power 61
BPCL 42
Nykaa 25
Trent 5
Oracle Financial 1

On the flip side, stocks ranging from Bajaj Finance, Hindustan Unilever, TCS, Infosys, UltraTech, ONGC, Hindustan Aeronautics, Coal India, Mahindra & Mahindra, and Nestle India will see a decline in their weightage, with outflows ranging from $103 million to as high as $204 million.

Stock Outflow ($ Million)
Bajaj Finance -204
Hindustan Unilever -194
TCS -140
Infosys -125
UltraTech -125
ONGC -122
Hindustan Aeronautics -114
Coal India -111
Mahindra & Mahindra -109
Nestle India -103

Besides these names, there are many other stocks whose weightage will see a reduction on the standard index, including Power Grid, Cipla, Sun Pharma, Torrent Pharma, DLF, among others.

Outlows Range No. Of Stocks
Up to $20 million 27
From $30 million to $50 million 16
From $50 Million to $75 Million 8

 



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