How will changes in the MSCI India Index affect equity flows?

NEW DELHI: MSCI has announced a series of inclusions, exclusions and weighting changes in some Indian stocks that will affect flows in those stocks.

The global index service provider added four stocks to its MSCI India index, namely Tata Elxsi, Adani Power,

& power and . Tata Elxsi is expected to see inflows of $188 million, followed by $150 million each in Jindal Steel & Power, Edelweiss said in a note.

AU Small Finance Bank is expected to see an inflow of $78 million.


Reliance Industries, which has increased its weight in the index, is expected to see an inflow of $335 million.

“On expected lines,

The number of shares will increase due to the partially paid conversion to common shares in November 2021 and the resulting weighting will result in an inflow of approximately $335 million,” said Edelweiss.

Sun Pharma ($90 million),

($55M), ($35M), ($25M), and ($20M) are some other stocks that could benefit from an increase in their weighting in the MSCI Index.

Meanwhile, there could be $225 million in outflows following a reduction in index weighting. , NTPC, Vedanta, , and outflows are expected to range from $100 million to $220 million.

JSW steel, information edge,

HDFC, Tata Consumer and a few other stocks that may see outflows due to reducing their MSCI index weighting.

(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times.)

Cheryl Tenny

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