MSCI Rejig: These 12 Stocks May See $2 Billion Inflows, Says Nuvama
Nuvama expects 12 Indian stocks to be included and one high-conviction exclusion during the MSCI rejig of its emerging markets index in May 2024. Thermax is just at borderline for inclusion,
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.