India's influence on the MSCI Global Standard index, a key tracker of emerging market stocks, has reached a new high, setting the stage for substantial inflows into its equity markets. The latest adjustments in the index will likely attract around $3 billion into Indian markets, as the country's weight on the index is set to increase from 19.2% to 19.8%, according to Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research.
As India's weight on the index grows, it continues to close the gap with China, whose weightage will decrease from 24.8% to 24.2%. These changes will come into effect after markets close on August 30, with India's weight potentially surpassing 20% by the end of November.
The increase in India's presence on the index is expected to bring inflows of $2.7 billion to $3 billion. HDFC Bank, India's largest private lender and the most significant stock in the NSE Nifty 50, will see a notable increase in its weightage, which could trigger inflows of $1.8 billion, according to Nuvama.
"Given the current pace and momentum in domestic equities, India could potentially cross 22% weightage by year-end," Pagaria noted, highlighting the bullish outlook for India's position on the MSCI index.
Several other Indian companies, including Bharti Airtel, Coal India, and Mphasis, will also see an increase in their index weightage. Conversely, companies such as Maruti Suzuki India, LTIMindtree, Ambuja Cements, Adani Enterprises, Yes Bank, and SRF will experience a reduction.
Additionally, Dixon Technologies, Vodafone Idea, Oil India, Zydus Lifesciences, Rail Vikas Nigam, Prestige Estates Project, and Oracle Financial Services are among the companies that will be added to the MSCI Emerging Markets index, while Bandhan Bank will be excluded.
Moreover, about 25 stocks will be added to the MSCI India Small-cap index, which is expected to bring in inflows ranging from $3 million to $26 million per stock, further boosting India's equity markets.
(Source:www.deccan-herald.com)
As India's weight on the index grows, it continues to close the gap with China, whose weightage will decrease from 24.8% to 24.2%. These changes will come into effect after markets close on August 30, with India's weight potentially surpassing 20% by the end of November.
The increase in India's presence on the index is expected to bring inflows of $2.7 billion to $3 billion. HDFC Bank, India's largest private lender and the most significant stock in the NSE Nifty 50, will see a notable increase in its weightage, which could trigger inflows of $1.8 billion, according to Nuvama.
"Given the current pace and momentum in domestic equities, India could potentially cross 22% weightage by year-end," Pagaria noted, highlighting the bullish outlook for India's position on the MSCI index.
Several other Indian companies, including Bharti Airtel, Coal India, and Mphasis, will also see an increase in their index weightage. Conversely, companies such as Maruti Suzuki India, LTIMindtree, Ambuja Cements, Adani Enterprises, Yes Bank, and SRF will experience a reduction.
Additionally, Dixon Technologies, Vodafone Idea, Oil India, Zydus Lifesciences, Rail Vikas Nigam, Prestige Estates Project, and Oracle Financial Services are among the companies that will be added to the MSCI Emerging Markets index, while Bandhan Bank will be excluded.
Moreover, about 25 stocks will be added to the MSCI India Small-cap index, which is expected to bring in inflows ranging from $3 million to $26 million per stock, further boosting India's equity markets.
(Source:www.deccan-herald.com)
Homepage
Send to a friend
Printable version
Share
