According to a report by JM Financial Research, the upcoming adjustment to the MSCI India Standard index may trigger an estimated passive inflow of approximately $2.3 billion into Indian equities. During the August review cycle, up to 12 new stocks are expected to be included and three excluded.
Among the companies that might enter the index, Adani Green Energy, Adani Energy Solutions, and the investment platform Groww (Billionbrains Garage Ventures) are highlighted as high-probability candidates. The brokerage firm estimates that the addition of Groww could bring about $821 million in passive inflows, while Adani Green is projected to receive approximately $773 million.
Ather Energy is considered a medium-probability contender, contingent upon further improvement in its market capitalization adjusted for free float during the observation period.
Furthermore, the brokerage firm identified Laurus Labs and Biocon as strong candidates for transitioning from the MSCI Small Cap index to the Standard Index in August. This transition could potentially provide a passive inflow of $554 million for Laurus Labs and $285 million for Biocon.
The mid-cap IT company Coforge is categorized as a medium-probability candidate for transition and, if included, could receive an inflow of $567 million.
On the other hand, Astral is considered a high-probability candidate for exclusion from the index, while SBI Cards and Payment Services is classified as a medium-probability candidate for removal. The exclusion of SBI Cards could lead to an outflow exceeding $140 million, whereas the outflow from Astral could amount to around $138 million, according to estimates. There is also a low probability of Balkrishna Industries exiting.
Currently, the MSCI India Standard Index comprises about 165 components with a total market capitalization of approximately $3.2 trillion. Market participants closely monitor MSCI index reviews, as changes typically lead to significant trading volumes and short-term price fluctuations in the affected stocks, largely driven by passive fund adjustments.
International Holding Company (IHC) from Abu Dhabi plans to make an investment of $11.5 billion in a comprehensive aluminum project located in the eastern Indian state of Odisha. This project will be implemented as a joint venture with the Indian Adani Group.
According to an official representative of the state, this initiative marks the largest foreign investment in the country's mining and metallurgical industries.
