Dalal Street will have its eyes glued to it given that several foreign investors use the MSCI indices as a gauge to invest in India.
is widely expected to make an entry into the global standard index, according to analysts.
If it makes it to the global standard index, this may result in inflows of close to $137-148 million, analysts said.
Nuvama Alternative and Quantitative Research sees some slim chances for
to enter into the global standard index. If this turns true, it may result in inflows of about $150 million, it said.
Among stocks that are likely to get excluded are
and .
“Biocon and Indus Towers have crossed the lower cut-off threshold and, therefore, we have included them as our low probability exclusions,” Emkay Global Financial Services said. Biocon’s exit could result in outflows of $46-66 million, according to analysts. Indus Towers’ exit may result in outflows of $43 million.
Adani update
The Street will also look for any announcements pertaining to the Adani Group stocks that are part of the MSCI indices.
The recent massive sell-off in Adani Group companies in the backdrop of the allegations made by US-based short seller Hindenburg Research, had raised questions on whether these stocks will continue to be part of the MSCI global indices.
MSCI had sought feedback from market participants on the steps to be taken.
Currently, 8 Adani group firms and associated companies are part of the MSCI Standard index and their cumulative weight is 5.75%.
According to an analysis by Nuvama on the possible actions MSCI can take, one of them was that the index aggregator could reduce the weight of stocks by half.
If the weight is reduced, it could result in cumulative outflows of $1.5 billion, according to the research firm.
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