Coforge, Fortis Healthcare, Paytm among 8 stocks set for MSCI India index inclusion

MSCI is likely to add Coforge, Fortis Healthcare, Paytm (One97 Communications), and Coromandel International to its India Standard Index during the February review, with changes effective March 3, 2025. JM Financial Institutional Securities estimates these additions will result in a total inflow of $1.3 billion.

Key Highlights:

  • Probable Additions:
    • Coforge: Expected inflow of $293 million
    • Fortis Healthcare: $176 million
    • Paytm: $169 million
    • Coromandel International: $156 million
  • Lower Probability Additions: Federal Bank, Blue Star, GE Vernova TD India, and Uno Minda, with potential inflows ranging from $104 to $137 million.

IndusInd Bank Update:

  • Weight Doubling in MSCI Index: IndusInd Bank’s weight is likely to double due to a reduction in FII stake to 46.6% in December, creating significant foreign headroom.
  • Estimated Inflows: $250–300 million expected, translating to passive flows for 13.2 million shares.
  • Rebalancing Impact: Expected to reflect on February 28, 2025.

This rejig reflects the dynamic adjustments in MSCI indices based on market movements and FII positioning, with significant implications for the stocks involved and broader market sentiment.