Zydus Lifesciences, Mankind Pharma, Bosch, Jindal Stainless, Oberoi Realty, Phoenix Mills, Sundaram Finance, and PB Fintech are among 17 stocks that are likely to be included in the MSCI Standard index during the May 2024 index reconfiguration, according to estimates by IIFL Alternative Research.
MSCI will announce the changes in constituents of the MSCI global standard indices on May 14, while the changes will take place on May 31.
Global passive funds, such as exchange-traded funds (ETFs), structure their portfolios based on these indices. As a result, any inclusion or exclusion and change in composition lead to these funds adjusting their allocations to these stocks.
The total inflow on account of the stock inclusions will be almost $3.2 billion, said IIFL Securities’ Senior Vice President Sriram Velayudhan.
According to an estimate by IIFL Alternate Research, PB Fintech is expected to witness an inflow of $250 million if included in the MSCI index, while Zydus Life, Phoenix Mills, Sundaram Finance, NHPC, and Torrent Power are anticipated to receive an inflow between $200 and $230 million.
Other stocks that are likely to be included in the MSCI index, according to IIFL, include Solar Industries, Oracle Financials, Oil India, Canara Bank, Indus Tower and JSW Energy.
Paytm parent One97 Communications is likely to be excluded from the index, which may result in an outflow of $90 million, IIFL said. Paytm stock plunged 52% in the past six months.
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