These eight stocks included in the MSCI India Domestic Index will see huge investments
Eight stocks have been added to the MSCI India Domestic Index for August, including names like Rail Vikas Nigam Ltd (RVNL), PB Fintech Ltd, Vodafone Idea Ltd, and Zydus Lifesciences Ltd. Other additions are Bosch, Dixon Technologies, and Oil India. MSCI reveals these changes will be incorporated by August 30, 2024. It’s expected that India will gain up to $3 billion in the wake of this rebalancing.
If predictions by financial firm Nuwama hold true, these stocks could see passive inflows of $281 million. Dixon may get inflows to the tune of $281 million, the conversion being about 2 million shares. Vodafone may fetch $278 million, equivalent to 1,450 million shares. Investments of $238 million and $230 million might boost Oil India and Zydus Lifesciences, respectively. RVNL could be looking at over $200 million.
Nuwama states that the changes would cause India’s weighting to approach 20%. As per their estimations, this could see net $2.7 to $3 billion FII passive investments for India. They predict an increase in this pace; India could attain a 20% net weight and perhaps cross 22% by the year-end. Meanwhile, MSCI India Domestic Smallcap Index will see the addition of 25 stocks including the likes of Green Energy Services, Inox Wind Energy, Shakti Pump India. Others are Bajaj Hindustan Sugar, Aditya Vision, Paras Defence. Some stocks, like Cochin Shipyard, Jayaprakash Associates and Network 18 Media, have been dropped. A total of 27 stocks will be added, and 96 securities will be dropped from the MSCI ACWI index.
Top stars will include Galderma Group, Zeeland Pharma, and Edtech B. The MSCI Emerging Markets Index will carry new additions from Brazil, China, and the United Arab Emirates. Due to existing market access restrictions, MSCI will not proceed with index review changes for any securities in Bangladesh on the MSCI Bangladesh Index.
