PFC, REC, Ashok Leyland, IDFC First Bank shares to see $150-200 million inflows each on MSCI inclusion
Power Finance Corporation Ltd (PFC), REC Ltd, Ashok Leyland Ltd and five other stocks would be in focus on Friday morning after the index aggregator MSCI added these eight stocks to its MSCI Global Standard indices. The move is seen resulting in $150-200 million in inflows for the stocks. All changes will be implemented as of the close of August 31.
The list included Cummins India, HDFC Asset management, IDFC First Bank, Supreme Industries and Astral Ltd. ACC, a Adani group stock, would be the only scrip that is excluded from the list. This stock is expected to see $75 million in outflows.
“A total of eight inclusions have been announced, aligning with our projections for six of them. However, two unexpected entries (REC & Supreme Industries) emerged as surprises. In our assessment, these were strong contenders for the November 23 review. It’s worth noting that the aforementioned stocks were selected via the NOC route as this time India got six NOC slots which is one of the highest seen in my experience,” said Abhilash Pagaria, Head, Nuvama Alternative & Quantitative Research.
Also, the MSCI made changes to its MSCI Global Small Cap indices, wherein it made 40 inclusions and 11 exclusions in MSCI India list. The inclusions included Mishra Dhatu Nigam, PTC Industries, Glenmark Life Sciences, Five Star Business Finance, Anant Raj, CPCL, Ather Industries, Ami Organics, Marksans Pharma, Newgen Software and Patel Engineering, among others.
Exclusions for the index include Tata Communications, Aditya Birla Capital, Ashok Leyland, IDFC First Bank, REC, NIIT, BEML Land Asset and Astral among others.
MSCI said there will be no changes in the list of Emerging Markets currently included in the MSCI Frontier Emerging Markets Index resulting from this review. The MSCI Frontier Emerging Markets Index is constructed by aggregating all the country indices in the MSCI Frontier Markets index and selected country indices in the MSCI Emerging Markets index. The Emerging Markets country composition of the MSCI Frontier Emerging Markets Index is reviewed annually. In addition, new countries included in the MSCI Frontier Markets index will be simultaneously included in the MSCI Frontier Emerging Markets index. As such, Latvia will be added in the MSCI Frontier Emerging Markets Index as part of the August 2023 Index Review.
MSCI it will add 61 new scrips and remove 46 securities its MSCI ACWI Index. The three largest additions to the MSCI World index measured by full company market capitalisation will be Super Micro Computer (USA), Jabil Circuit (USA) and Draftkings A (USA). The three largest additions to the MSCI Emerging Markets Index measured by full company market capitalization will be Ecopro Co (Korea), CNPC Capital A (Hk-C) (China) and Gongniu Group A (Hk-C) (China).
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