 "The addition to MSCI's indices has sent Riyadh stocks into a bull market and brought record fund inflows")
Jindal Stainless, Punjab National Bank, Bhel and Oberoi Realty are likely to get added to the MSCI global standard index during its rebalancing exercise in February.
A 5-10 per cent rally could also brighten the prospects for Dalmia Bharat, Union Bank, Alkem Lab, Solar Industries and Nykaa, said Nuvama Institutional Equities in a note. These stocks, if added, could see passive inflows of upwards of $120 million (Rs 1,000 crore) each, the note added.
However, a slide in shares of Indraprastha Gas and Petronet LNG could increase the risk of their expulsion from the MSCI index. The cut-off date for calculating the inclusion and deletion of stocks is anytime during the second half of January.
The official announcement by MSCI will be on February 12 and the rebalancing date is typically on the last day of February. Stock prices of companies that get added or removed from the index tend to get impacted due to the massive assets tracking the MSCI indices.
Thanks to the recent outperformance, India’s weightage in the MSCI index is close to 17 per cent, the highest-ever level. Meanwhile, the number of domestic stocks in the index has risen to 131 after the last rebalancing, which took place in November.
