MSCI November Rejig: Nuvama Sees Boost In HDFC Bank Weightage, Inclusion Of Adani Energy

The November round of rejig in MSCI indices may lead to a boost in HDFC Bank Ltd.'s weightage, according to Nuvama Alternative & Quantitative Research.

HDFC Bank could attract inflows amounting to $1.88 billion, Nuvama said in a report released on Tuesday, two days before the scheduled rejig of the MSCI indices. The private lender is included under the MSCI Global Standard Index.

As per Nuvama's forecast, Adani Energy Solutions Ltd., along with Kalyan Jewellers Ltd., Oberoi Realty Ltd., and Alkem Laboratories Ltd., could be added to the index. Among the probable additions is also BSE Ltd., one of the two main stock exchanges in India.

The official announcement on the adjustments in the MSCI indices is scheduled at 2:30 a.m. (IST) on Nov. 7. The rejig will come into effect on Nov. 25.

Nuvama, in its report, said Adani Energy could attract an inflow of $306 million, BSE could draw $257 million, followed by Oberoi Realty ($218 million), Alkem Laboratories ($211 million), and Kalyan Jewellers ($210 million).

Apart from these, there is a borderline chance for the inclusion of Voltas Ltd. in the MSCI Global Standard Index, Nuvama said. If included, the company could draw inflows of $306 million, it added.

The report also shared a list of 19 entities that could be included under the MSCI Smallcap Index following the rejig. These companies include Ola Electric Mobility Ltd., JSW Holdings, Brainbees Solutions Ltd., Jyoti CNC Automation Ltd., Eureka Forbes Ltd., Aadhar Housing Finance Ltd., PC Jeweller Ltd., and Allied Blenders and Distillers Ltd., among others.

These small-cap firms could cumulatively draw inflows of around $100 million, as per the forecast.

Nuvama also shared a list of potential exclusions from the MSCI Smallcap Index. These include Hitachi Energy India Ltd., Sanofi Consumer Healthcare India Ltd., Hinduja Global Solutions Ltd., Fusion Finance Ltd. and TCI Express Ltd.

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