As MSCI announced their May updates, stocks like PolicyBazaar, NHPC and Phoenix Miils have entered the MSCI Global Standard Index while Paytm, Berger Paints and Indraprastha Gas have been excluded from the index. 

What Happened: In MSCI's May update, the following stocks have been included in the MSCI Global Standard Index. 

PolicyBazaar with an expected inflow of $283 million (around ₹2362 crore), Sundaram Finance with an expected inflow of $243 million (around ₹2028 crore), NHPC with an inflow of $234 million (around ₹1953 crore), Phoenix Mills with an inflow of $231 million (around ₹1928 crore) and Indus Towers with inflow of $216 million (around ₹1803 crore). 

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Thirteen stocks have been included and with three exits, the number of Indian stocks in the MSCI Standard index reached 146. 

Berger Paints, Indraprastha Gas and Paytm have been excluded and they are expected to see outflows of $117 million (around ₹976 crore), $113 million (around ₹943 crore) and $70 million (around ₹584 crore) respectively.

Despite this, Indraprastha Gas and Paytm have been included in the MSCI Small Cap index. Other major additions are HUDCO, Vedant Fashions, Waaree Renewable Tech, RR Kabel and Gilette India.  

In the Small Cap index, 14 stocks have been included, resulting in India's stock count in the index reaching 497. 

Why Is It Important: The rejig will come into effect from May 31 and Nuvama Alternative and Quantitative Research said it will bring passive inflows of around $2.5 billion. India's weightage in the MSCI EM index is set to increase from current 18.3% to closer to 19%, said Nuvama. 

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