Index provider MSCI Inc has announced the addition of nine stocks, including Suzlon Energy, IndusInd Bank, and One 97 Communications (Paytm), to its MSCI India Standard Index, with no deletions in this round.
The other stocks joining the index in the latest update, effective 30 November, are Persistent Systems, APL Apollo, Polycab, Macrotech Developers, Tata Motors (class A shares), and Tata Communications.
Class A shares are a category of stock that typically grants shareholders more voting rights per share compared to other classes, like Class B shares.
Brokerage Nuvama Alternative and Quantitative Research estimates that the addition of the stocks may trigger a combined inflow of $1.72 billion.
According to Nuvama, IndusInd Bank is projected to receive inflows of $290 million, Suzlon Energy is expected to attract $264 million, and Persistent Systems might see $258 million. Paytm (One 97 Communications) is estimated to have an inflow of $163 million, while APL Apollo is anticipated to receive $227 million.
With their upcoming inclusion in the MSCI Indian Standard Index, Suzlon Energy, Persistent Systems, and APL Apollo will be concurrently removed from the MSCI Smallcap Index.
The Morgan Stanley Capital International (MSCI) indices, including the MSCI Indian Standard Index, are significantly influential in global financial markets. These indices are closely followed by global investment funds, and adjustments within these indices typically lead to corresponding shifts in international capital flows.
Meanwhile, the latest reshuffle of the MSCI Smallcap Index will involve the addition of 42 stocks and the removal of 19. New entrants to the index include SJVN, Gokaldas Exports, Ptc India, Dodla Dairy, Hindustan Construction Company, Arvind Fashions, AGI Greenpac, Gateway Distriparks, Electrosteel Castings, DB Realty, Orient Cements, Gabriel India, Astra Microwave, Lloyds Engineer.
Notable stocks being removed from the MSCI Smallcap Index include Escorts Kubota, Indian Bank, ACC, Thermax, Linde India, BHEL, Vodafone Idea, Dalmia Bharat, and Jindal Stainless.
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