MSCI Rejig: These 12 Stocks May See $2 Billion Inflows, Says Nuvama

India has been maintaining an unparalleled momentum compared to its emerging market peers for quite some time now, and Nuvama Alternative & Quantitative Research anticipates this momentum to remain robust. Following the upcoming MSCI rejigs of its emerging markets index in May 2024, the research firm expects $2 billion in passive inflows into India.

Nuvama has 12 sure-shot inclusions and one high-conviction exclusion. Thermax is just at the border line for inclusion, it said in the April 18 note.

India currently holds an 18.2% weight in MSCI EM, according to Nuvama and it expects this to move closer to 20%. "We foresee more scope for inclusions in forthcoming reviews, and India's prominence in MSCI EM is poised to continue its ascent. I firmly believe in India's  potential," the note said.

The research firm expects Berger Paints to be excluded from the index, creating an outflow of $109 million and 19 million shares, according to the note.

Thermax, Zydus Lifesciences and Oberoi Realty are just at the border line for inclusion.

Timeline

• The MSCI May 2024 rejig cut-off commenced on April 17 and will extend until April 30. According to Nuvama's Alternative Assessment, the cut-off should ideally be concluded between April 17 and April 19. Since India was closed on April 17, the cut-off will be based on the April 16 closing.

• The announcement is scheduled for May 14, with adjustments to be made on May 31.