The August review of the MSCI Standard Index could attract about $1.18 billion of inflows into India through the inclusion of six companies: Vodafone Idea, Prestige Estates, Oberoi Realty, Schaeffler India, Dixon Technology and Uno Minda, according to Nuvama Institutional Equities.
Additionally, stocks like Rail Vikas NigamZydus Lifescience, Oracle Financial and Oil India are on the radar and have the potential to contribute a total inflow of $1 billion. To make the cut to the Index the stock needs to have anywhere between 10 – 35% jump in its closing value on June 29, 2024.
MSCI Standard Index review on August 13
The review continues to be action-packed, with the official announcement scheduled for August 13 and implementation on August 30.
India’s weight in the MSCI Emerging Market Index now stands at 19.2% and is expected to gradually move past the 20% mark. The stocks that have made the cut could collectively bring in potential inflows of $1.18 billion.
The note also projects that the weightage of HDFC Bank, Indus Tower, and Mphasis may increase depending on the availability of headroom for foreign shareholding. The shareholding pattern for HDFC Bank is expected to be released by July 5, which will determine the headroom for foreign investors to increase their stake.
What’s the Nuvama call on HDFC Bank?
Currently, Foreign Portfolio Investors (FPIs) category I and II hold a 47.81% stake in HDFC Bank, while other foreign funds hold close to 5%. If there is scope for increased foreign shareholding, analysts at Nuvama are projecting further upside in HDFC Bank’s share price.
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