The MSCI index review, scheduled for November 6, 2024, is expected to bring considerable changes, with several prominent Indian companies likely to be included in the MSCI Standard Index.
This periodic review assesses and updates the composition of MSCI indices, and an inclusion often leads to substantial investments from global funds that track these indices.
HDFC Bank’s Weight Likely to Rise Further
In addition to the potential new entries, HDFC Bank will be a key focus in this review. Following a recent quarterly rebalancing that increased its MSCI index weight, another adjustment is anticipated.
IIFL projects this could drive around $1.8 billion in additional inflows, underscoring the strong investor demand for HDFC Bank.
Top Candidates for MSCI Inclusion
According to a report by IIFL, six Indian companies are strong contenders for inclusion in the MSCI Standard Index, positioning them to attract substantial foreign capital.
Leading the list is Alkem Laboratories, which is projected to bring in nearly $200 million in inflows if added. Voltas also stands out as a top candidate, with potential capital inflows exceeding $300 million, signaling strong interest in the upcoming review.
Additional Companies in the Running
Other companies expected to join the MSCI Standard Index include Oberoi Realty, Adani Energy Solutions, and Kalyan Jewellers. Each of these companies is positioned to benefit from increased visibility and investor interest following their potential inclusion.
Bombay Stock Exchange (BSE) is also a likely candidate, with a projected influx of over $220 million should it make it into the index.
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