15 May , 2022 By : Kanchan Joshi
NEW DELHI: MSCI has announced a couple of inclusion and exclusion, along with changes in weightages of a few Indian stocks, which will influence flows in these stocks.
Global indices service provider has added four stocks to its MSCI India index, namely Tata Elxsi, Adani Power, Jindal Steel & Power and AU Small Finance Bank. Tata Elxsi is likely to see flows of $188 million, followed by $150 million each in Adani Power and Jindal Steel & Power, Edelweiss said in a note.
AU Small Finance Bank is expected to see an inflow of $78 million.
Reliance Industries, whose weightage has increased in the index, is expected to see a $335 million inflows.
"On expected lines, Reliance Industries share count will increase due to partly paid conversion to ordinary shares seen in November 2021 and the consequent weight up will lead to approximately inflow of $335 million," Edelweiss said.
Sun Pharma ($90 million), Page Industries ($55 million), Godrej Consumer ($35 million), United Spirits ($25 million) and ICICI Lombard ($20 million) are some other stocks that could benefit from a rise in their weightages in the MSCI index.
Meanwhile, Bharti Airtel may see $225 million in outflows following a cut in index weightage. Adani Green Energy, NTPC, Vedanta, Maruti Suzuki, and Hindalco Industries are expected to see $100-220 million outflows.
JSW Steel, Info Edge, Tech Mahindra, HDFC, Tata Consumer, Ambuja Cements and Pidilite Industries are some other stocks, which may see outflows, due to trimming of their weightages in the MSCI index.
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