North India Statesman
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Mumbai: Major changes have been announced in the MSCI index on August 12. 27 new stocks have been added to the MSCI Small Cap Index, while Rail Vikas Nigam and Vodafone Idea have been added to the Global Standard Index. It is estimated that these changes in the MSCI indices will result in passive fund flows of $2.7 billion to $3 billion from FIIs on a net basis. Apart from HDFC Bank, Bharti Airtel, Coal India, Mphasis, Hindustan Petroleum (HPCL0), ICICI Lombard General Insurance and Persistent Systems have increased their weightage in the Global Standard Index, HDFC Bank shares today fell sharply by 3.29 percent or Rs. 54.60 to close at Rs 1606.45.
MSCI has announced an increase in its foreign inclusion factor (FIF) to 0.56 per cent from September 2, 2024, from 0.37 per cent on August 30, 2024, while retaining HDFC Bank in its index. This has been done as part of the August 2024 index review.
Subject to the foreign ownership limit (FOL) of 74 per cent in HDFC Bank and a 0.5 adjustment factor, MSCI will apply a 0.75 adjustment factor as part of the August 2024 index review. The pending increase in the adjustment factor to 0.75 will be extended to November 1 as part of the index review, provided the foreign shareholding remains at least 20 per cent consistently at that time.
The August 2024 changes to the MSCI index include 27 new stocks in the small cap index, including Bandhan Bank, Go Digit General Insurance, Proteon EGV Technologies, Paras Defence & Space, and Aditya Vision.
With these changes, the broking house's Alternative and Quantitative Research has shown a closed bank passive fund inflow of $26 million and Go Digit passive fund inflow of $11 million. While fund inflows are estimated to be from Proteus IGAV Technology at $6 million, Paras Defence at $3 million and Aditya Vision at $3 million.
The new stocks added to the MSCI index include Shakti Pumps India, Sudarshan Chemical Industries, Aurobindo Solutions, Bharat Bijlee, Bajaj Hindustan Sugar, Sharda Motor Industries, Garware Hitech Films, Max Estates, Welspun Enterprises, Heritage Foods, Keystone Realtors, GMR Power and Auburn Infra, among others are Inox Wind, Shriram Pistons & Rings, TVS Supply Chain Solutions, Piccadilly Agro Industries, Senco Gold, India Shelter Finance, Inox Green NG, Gulf Oil Lubricants India, Moschip Technologies and Magellanic Cloud.
While the exiting stocks include Dixon Technology, Cochin Shipyard, IREDA, HUDCO, Network 18 Media & Investment and Jaiprakash Associates. These changes will be effective from the end of August 30, 2024.
Weightage of 27 existing stocks increased
Rail Vikas Nigam (RPNL) and Vodafone Idea have been included in the Global Standard Index, while Bandhan Bank has been excluded from the index. Other stocks newly included in the Global Standard Index include Dixon Technology India, Oil India, Zydus Lifesciences, Prestige Estate Projects and Oracle Financial Services Software. Of this, passive fund flow of Rs 21.90 crore from RVNL and Rs 27.8 crore fund flow from Vodafone Idea has been estimated by alternative and quantitative research of broking house Nuwa. Apart from this, the weightage of 27 stocks currently included has been increased by ASCI. These include IRB Infrastructure, Star Health, TeamCan India, Endurance Technologies, Gland Pharma, Aptus Value Housing Finance, Hindustan Copper, Delhiwari, Inox Wind, Jupiter Vegans, IndiaMART Intermesh, Happiest Minds and SBFC Finance.
