RVNL, Vodafone Idea, Oil India and four other stocks have been included in the August rejig of the MSCI India index, which is part of the MSCI Global Standard Index.
What Happened: According to MSCI’s official statement, RVNL, Oil India, Vodafone Idea, Oracle Financial Services, Prestige Estate Projects, Dixon Technologies and Zydus Lifesciences have been added to the index. Bandhan Bank has been removed from the index.
Nuvama Alternative and Quantitative Research calculates that RVNL will receive up to $219 million (around ₹1838 crore) inflows, Dixon will get around $281 million (around ₹2359 crore) and Vodafone Idea will rake in $278 million (around ₹2333 crore) after the stocks have been included in the index.
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India’s weight in the emerging market basket is tentatively around 20% and could cross 22% by year-end, Nuvama noted. The research firm also said India could receive foreign institutional investments of around $2.7 billion to $3 billion (around ₹22,668 crore to ₹25,187 crore).
Additionally, MSCI also announced that HDFC Bank’s weightage in the Global Standard Index will be hiked through two tranches. The first change will happen after the current review.
The second change will happen in the November review if the FPI headroom in HDFC Bank remains above 20% during the November review. Nuvama expects an inflow of $1.8 billion (around ₹15,112 crore) to HDFC Bank after the review.
In the MSCI India Domestic Small Cap Index, 25 stocks have been added including GMR Power, Inox Wind, Inox Green Energy, Paras Defence, TVS Supply Chain and Shriram Pistons.
MSCI India Small Cap Index
| Additions | Deletions |
|---|---|
| ADITYA VISION | COCHIN SHIPYARD |
| AURIONPRO SOLUTION | DIXON TECHNOLOGIES INDIA |
| BAJAJ HINDUSTHAN SUGAR | HOUSING URBAN DEV |
| BANDHAN BANK | INDIAN RENEWABLE ENERGY |
| BHARAT BIJLEE | JAIPRAKASH ASSOCIATES |
| GARWARE HITECH FILMS | NETWORK 18 MEDIA & INV |
| GMR POWER & URBAN INFRA | |
| GO DIGIT GENERAL INS | |
| GULF OIL LUBRICANT INDIA | |
| HERITAGE FOODS | |
| INDIA SHELTER FINANCE | |
| INOX GREEN ENERGY SVCS | |
| INOX WIND ENER | |
| KEYSTONE REALTORS | |
| MAGELLANIC CLOUD | |
| MAX ESTATES | |
| MOSCHIP TECHNOLOGIES | |
| PARAS DEFENCE AND SPACE | |
| PICCADILY AGRO IND | |
| PROTEAN EGOV TECH | |
| SENCO GOLD | |
| SHAKTI PUMPS INDIA | |
| SHARDA MOTOR INDUSTRIES | |
| SHRIRAM PISTONS & RINGS | |
| SUDARSHAN CHEM INDS | |
| TVS SUPPLY CHAIN SOLN | |
| WELSPUN ENTERPRISES |
The changes in the index will come into effect on August 30 close.
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