MSCI May rejig to trigger $3.2 billion inflows into 17 stocks

Zydus Life Sciences, Pharmacy of humanity, bosco, Jindal Stainless, Oberoi Real Estate, Phoenix Mills, Sundaram Financeand PB Fintech are among 17 stocks likely to be included in the MSCI Standard index during May 2024 index reconfiguration, as estimated by IIFL Alternative Research.

MSCI will announce the changes to the components 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 leads to these funds adjusting their allocations to these stocks.

The total income due to the stock additions will be almost $3.2 billion, he said. IIFL ValuesSenior 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, NHPCand torrent power They are expected to receive an entry of between 200 and 230 million dollars.

Other stocks likely to be included in the MSCI index, according to IIFL, include solar industriesOracle Finance, Indian Oil, Canara BankIndus Tower and JSW Energy.pay Parent One97 Communications is likely to be excluded from the index, which could result in an outflow of $90 million, IIFL said. Paytm shares have plunged 52% in the last six months.