Mumbai, Feb 27 The MSCI Inc's February index review is set to take effect after market hours on Friday, bringing a net passive inflow of up to $1 billion into Indian stocks.
This adjustment is expected to cause increased volatility in the stock market, particularly for companies affected by the changes.
According to data from IIFL Capital, the estimated inflow from these rejigs ranges between $850 million and $1 billion.
The key highlight of the review is the inclusion of Hyundai Motor India Limited as the only Indian large-cap stock added to the MSCI Global Standard Index.
The company, which went public in November 2024, is set to receive an inflow of $257 million, marking the highest weight increase among Indian securities.
Now, all eyes will be on Hyundai Motor India, the only Indian large-cap stock added to the MSCI Global Standard Index in the February review.
Apart from these changes, the review has led to an increase in the weightage of several Indian stocks, further contributing to the anticipated inflow.
IndusInd Bank Ltd. is set to receive the highest inflow of $258 million, followed by Zomato Limited ($107 million), Varun Beverages Limited ($96 million), Mankind Pharma Limited ($48 million), and Torrent Pharmaceuticals Limited ($43 million).
Other stocks such as PB Fintech Limited, Adani Enterprises Limited, and Voltas Limited will also see an increase in their weightage.
HDFC Bank Limited now holds the highest weightage among Indian stocks in the MSCI index, followed by ICICI Bank Limited, Infosys Limited, and Bharti Airtel Limited.
In the small-cap segment, MSCI has added 19 Indian stocks while removing an equal number.
Some of the key additions include Jyoti CNC Automation Limited, Ola Electric Mobility Limited, CarTrade Tech Limited, Afcons Infrastructure Limited, and TBO Tek Limited.
Following these changes, India’s weightage in the MSCI Global Standard Index will increase from 18.8 per cent to 19 per cent.
However, the country has slipped one rank to third place in terms of weightage among emerging markets.
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