MSCI Quarterly Rejig: Oil India, RVNL, Vodafone Idea Among New Additions to India Index; Bandhan Bank Removed

In the latest quarterly reshuffle by MSCI, several notable changes have been made to the MSCI India Index. Seven stocks, including Dixon Technologies, Oil India, and Rail Vikas Nigam Ltd (RVNL), have been added to the index, according to a statement released on August 12. Other firms that have made it to the index include Oracle Financial Services, Prestige Estates Projects, Vodafone Idea, and Zydus Lifesciences.

Meanwhile, the only stock to be removed from the MSCI India Index is Bandhan Bank, a private sector lender.

Nuvama Alternative and Quantitative Research estimates that the inclusion of these companies could lead to significant passive inflows. RVNL is expected to attract up to $219 million, Dixon Technologies might see an inflow of around $281 million, and Vodafone Idea could draw in approximately $278 million.

The rejig is part of a broader adjustment within the Emerging Markets (EM) Pack, with India’s tentative weight remaining close to 20 percent. Nuvama’s research suggests that this could result in a net FII (Foreign Institutional Investor) passive inflow of $2.7 billion to $3 billion into India, with potential for the country’s weight to surpass 22 percent by the end of the year.

Additionally, the MSCI India Domestic Index will see eight new inclusions: Bosch, Dixon Technologies, Oil India, PB Fintech, Phoenix Mills, RVNL, Vodafone Idea, and Zydus Lifesciences. No exclusions have been announced for this index.

In the MSCI India Domestic Small Cap Index, 25 new securities will be added, including GMR Power, Inox Green Energy, Inox Wind, Keystone Realtors, Paras Defence, Senco Gold, Shakti Pumps, TVS Supply Chain, Welspun Enterprises, and Shriram Pistons. However, eight securities, including Cochin Shipyard, Dixon Technologies, IREDA, Jaiprakash Associates, Network 18 Media, PB Fintech, Phoenix Mills, and RVNL, will be excluded.

These changes will come into effect after the market closes on August 30, 2024.

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_{^{Source: Moneycontrol}}