The MSCI India Standard Index is gearing up for its August rebalancing, with eight new stocks poised to join the prestigious index. According to a report by JM Financial, the incoming stocks include Vodafone Idea, Dixon Technologies, Cochin Shipyard, Railway Vikas Nigam, Oil India, Zydus Lifesciences, Oracle Financial Services Software, and KPIT Technologies.
This development is expected to unleash a wave of passive inflows, with estimates suggesting a total of $1.239 billion pouring into these stocks. Dixon Technologies is expected to be the biggest beneficiary, with anticipated inflows of $192 million, followed closely by Railway Vikas Nigam at $174 million, and Vodafone Idea at $165 million., as per the report.
Meanwhile, HDFC Bank is also in the spotlight, with its weight in the MSCI Global Standard Index set to nearly double due to a technical factor triggered by its foreign shareholding dropping below 55%. This could lead to a staggering $3.2 billion in inflows, with passive Foreign Institutional Investors likely to scoop up an estimated ₹25,000 crore worth of shares by September 2.
The MSCI India Standard Index rebalancing announcement is scheduled for August 12, with changes effective as of August 30, 2024.
