look news india
Mumbai: The move is likely to trigger an estimated $3.2 billion in flows into shares included in Morgan Stanley's MSCI Global Standard index in May. MSCI is expected to announce changes in the stocks included in its indices for the month of May on May 14, 2024. Which will be implemented from 31 May 2024.
According to IIFL Alternative Research estimates, the 17 stocks likely to change the MSCI Standard index include Zydus Lifesciences, Mankind Pharma, Bosch, Jindal Stainless, Oberoi Realty, Phoenix Mills, Sundaram Finance and PB Fintech.
Global passive funds such as exchange traded funds (ETFs) will rotate their portfolios based on these indices. In which some scrips will be excluded and adjustments will be made in the allocation of funds with the inclusion of new scrips-shares in their place. The inclusion of these new shares is expected to trigger huge investment inflows of $3.2 billion.
According to IIFL Alternative Research estimates, if PB Fintech is included in the MSCI index, it will lead to investment inflows of $250 million. While investment inflows from Zydus Life, Phoenix Mills, Sundaram Finance, NHPC and Torrent Power are estimated to be between $200 million and $230 million.
Other likely stocks to be included in the MSCI index include Solar Industries, Oracle Financial, Oil India, Canara Bank, IndusInd Power and JSW NG. While the stocks that will emerge from this index are estimated by IIFL to include Paytm's parent company One97 Communications, there is a possibility of investment inflow of $9 million. It is noteworthy that in the last six months, the share price of Paytm has fallen by 52 percent.