The quarterly shuffle of MSCI Global Standard Index is scheduled to be announced in the early hours of Thursday, November 12. An inclusion of four potential stocks could attract net inflows of around $1.5 billion, with gross inflows of $1.7 billion and outflows of around $263 million, according to Nuvama Institutional Equities.
Nuvama has picked its “high conviction changes” ahead of the announcement. The shares of Coforge, Life Insurance Corporation of India (LIC), Adani Green, and Meesho are likely to be included in the MSCI Global Standard Index, according to the brokerage.
Nuvama expects ICICI Life Insurance Corporation and PI Industries to be excluded in the index, which could result in cumulative outflows of $263 million. ICICI Life’s exclusion could lead to outflows of $145 million while PI Industries’ exclusion could see $118 million of outflows.
If all four companies are included, it could lead to inflows of around $1.7 billion, according to Nuvama. A bulk of the potential inflows is expected in Coforge, as the brokerage estimates this at $653 million. LIC’s inclusion in the MSCI Global Standard Index could see inflows of $498 million. Adani Green could see inflows of $300 million if included while Meesho could see potential inflows of $254 million.
The rejig is scheduled to be announced at 3:30 AM on Thursday. The changes are expected to take effect on November 30.
On Wednesday, shares of Coforge closed 1.4% lower at Rs 2,017.50 while LIC closed slightly higher at Rs 400. Adani Green closed the day at Rs 1,401.70, down 3.3%, while Meesho ended 4.1% higher at Rs 248.25.
The shares of ICICI Life Insurance ended 2.7% higher at Rs 450 and PI Industries closed 2.8% higher at Rs 1,761 apiece.
The MSCI index rejig is closely tracked by market participants as these could lead to flows from passive funds and exchange traded funds that track the MSCI benchmarks. Stocks that are removed from the index could witness selling pressure as these funds realign their portfolios.