MSCI Index Rejig: Seven Indian Stocks Set To Join MSCI Global Standard Index

Seven prominent companies are on the cusp of welcoming substantial investments as they make their way into the MSCI Global Standard Index, with IndusInd Bank leading the way. The global index services provider, MSCI, is all set to reveal the results of its semi-annual index review on Tuesday, November 14, 2023.

IndusInd Bank, a stalwart in the Indian banking sector, is expected to receive an impressive $288 million in inflows from passive funds as it finds a spot in the MSCI Global Standard Index. This remarkable achievement for the bank showcases its resilience and robust performance in the financial market.

Following closely behind, Persistent Systems is poised to attract a significant investment of $228 million, while APL Apollo Tubes is not far behind with an expected inflow of $192 million. The inclusion of these companies in the MSCI index reflects their consistent growth and stability in their respective sectors.

Suzlon Energy, a leading player in the renewable energy sector, is on the verge of being included in the MSCI Standard Index. If successful, the company is predicted to receive an influx of $186 million in investments. Suzlon Energy's impressive performance and growth over the past year make it a compelling candidate for inclusion in the MSCI review, attracting significant attention from investors.

Two other companies, Polycab India and Paytm, are also expected to see substantial inflows of $168 million and $150 million, respectively, upon their inclusion in the MSCI Global Standard Index. This milestone reflects the recognition of their strengths in their respective sectors.

Tata Communications and Macrotech Developers (Lodha) are two potential inclusions in the MSCI index, with predicted inflows of $144 million and $138 million, respectively. While Tata Communications has a strong chance of making it into the MSCI India Standard Index, Lodha's inclusion remains on the borderline, according to experts.

In contrast to the inflow of investments, AU Small Finance Bank is the only company expected to experience an outflow. It may witness outflows worth $78 million following its exclusion from the MSCI Global Standard Index, as estimated by JM Financial.

On Monday, shares of several of these companies demonstrated positive trends, with IndusInd Bank, Suzlon Energy, Paytm, and APL Apollo Tubes trading with gains on the National Stock Exchange (NSE). However, Polycab India, Persistent Systems, and Tata Communications witnessed slight declines.

As these seven Indian companies gear up for inclusion in the prestigious MSCI Global Standard Index, they are expected to garner the attention of global investors, further enhancing their positions in the financial market and fostering economic growth in India.