Four Indian Stocks, Coromandel International, Paytm, Nykaa and Adani Energy Likely to Join MSCI Index: Report

Nuvama Alternative Research reported that four Indian stocks, Coromandel International, One97 Communications (Paytm), FSN Ecommerce (Nykaa) and Adani Energy Solutions are likely to be added to the Morgan Stanley Capital International (MSCI) Index. The potential inclusions of these Indian stocks could attract a combined inflow of over $770 million.

Nuvama Research Report Projects These Four Indian Stocks For MSCI Index Inclusion

Coromandel International

Coromandel International, a major fertiliser company leads the list with an expected inflow of $210 million. As of latest, the stock is trading at Rs 2,118.3 and has delivered a 13.5% return year-to-date (YOD). In comparison, the Nifty index has fallen by 1% during the same period.

Paytm Parent Company One97 Communication

One97 Communications, the parent company of Paytm, is expected to see an inflow of $209 million. The last traded price (LTP)of the stock stands at Rs 847.9. Nuvama estimated that despite a 15% drop in the financial services company's share price this year, the stock still has a strong chance of being included in the index.

FSN Ecommerce (Nykaa)

FSN Ecommerce, which runs the popular beauty and fashion platform Nykaa, is expected to see an inflow of $178 million. The stock has shown strong performance this year, with its YTD return of 15.9%. The stock was trading at Rs 190 on Thursday.

Adani Energy Solutions

Adani Energy Solutions, a major player in India's power transmission and infrastructure sector is likely to receive an inflow of $176 million, according to projections. The company's stock is latestly priced at Rs 914.2. It has delivered a positive YTD return of 11.0%, indicating steady performance so far this year.

Two Indian Stocks May Face MSCI Index Exclusion: Eyes on Sona BLW Precision and Thermax Limited

As per the Nuvama Alternative Research report, the two Indian stocks, Sona BLW Precision Forgings Limited, a leading automotive components manufacturer, and Thermax Limited, an energy and environment solutions provider, are expected to face exclusion from the MSCI index. Sona BLW Precision may see an outflow of $162 million, with its stock down 24.9% YTD. The stock of Sona BLW last traded at Rs 451.7. Thermax, on the other hand, might experience a $111 million outflow, as its stock, which trades at Rs 3,394.4, has dropped by 16.7% this year.

MSCI Index Review Timeline

The next MSCI index review is scheduled to be announced on May 14, with the changes coming into effect on May 30. The eligibility cut-off period for the review generally includes the last 10 trading days of April, as per MSCI's methodology.

What is MSCI Index and its significance?

The MSCI Index, or Morgan Stanley Capital International Index, is a widely recognized benchmark for global equity markets. It is an investment research firm that offers stock indexes, portfolio risk and performance analytics, and governance tools primarily for institutional investors and hedge funds. MSCI was established when Morgan Stanley acquired the licensing rights to Capital International data in 1986. Known for its stock indexes, MSCI covers various geographic regions and stock categories, including small-cap, mid-cap, and large-cap stocks. These indexes track the performance of the stocks within them and serve as the foundation for exchange-traded funds (ETFs).