The MSCI India Standard Index rebalancing is scheduled to be announced in the post-market hours of Feb. 11. The changes will take effect from March 3.
On JM Financial's list of stocks with a high probability of inclusion are Coforge Ltd., Fortis Healthcare Ltd., One 97 Communications Ltd. and Coromandel International Ltd.
The brokerage expects inflows of $293 million for Coforge, $176 million for Fortis Healthcare, $169 million for Paytm's parent company, One 97 Communications and $156 million for Coromandel International.
In the low probability category, JM Financial projects inflows of $137 million for Federal Bank Ltd., $143 million for Blue Star Ltd., and $104 million each for GE Vernova T&D India Ltd. and Uno Minda Ltd.
Additionally, IndusInd Bank Ltd.'s weight in the index is set to double, leading to estimated buying flows of $143 million, equivalent to 1.32 crore shares—2.9 times its average trading volume. The stock has declined 3% over the past month.
MSCI index rebalancing plays a key role in determining passive fund flows into Indian equities, as changes in the index influence foreign portfolio investors' allocations, impacting liquidity and stock valuations.
The previous MSCI index rejig in November 2024 led to an estimated $2.5 billion in passive foreign inflows into India, according to Nuvama Alternative & Quantitative Research. This raised India's weight in the MSCI Emerging Markets Index from 19.3% to 19.8%, while China's weight declined from 27% to 26.8%.
That reshuffle saw Kalyan Jewellers India Ltd., Voltas Ltd., and BSE Ltd. upgraded from small-cap to mid-cap status, while Oberoi Realty Ltd. and Alkem Laboratories Ltd. were newly added to the index.
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