According to Nuvama Alternative & Quantitative Research, Eternal is expected to attract the highest inflows at $650 million due to an increase in weightage. The MSCI India Standard Index rejig is scheduled to be announced next month, with changes taking effect from August 31 onwards. The actual cut-off date will only be known on August 13 when the review announcement is released. As per CNBC TV18, the MSCI August review cut-off window opened on Monday, July 20, with the window remaining open until July 31, 2026.
As reported by Nuvama, Laurus Labs leads the inclusions with expected inflows of $518 million, with 32 million shares likely to be added to the index. Adani Enterprises is expected to see inflows of $324 million, while Lenskart Solutions and Groww-parent Billionbrains Garage Ventures will likely see inflows of $272 million and $260 million respectively. The brokerage has named these as high-conviction inclusions alongside Eternal. According to CNBC TV18, Laurus Labs could get inflows worth over $500 million, while Billionbrains Garage Ventures could see inflows worth up to $260 million.
According to Nuvama, Balkrishna Industries, SBI Cards and Payment, and Astral are the key candidates for exclusion, with net passive income ranging from $133-162 million. These companies face potential removal from the index during the rebalancing process. The brokerage has identified these as high-conviction exclusions alongside the inclusion picks. As per CNBC TV18, Balkrishna Industries is expected to see outflows of $162 million, SBI Cards and Payment could see outflows of $141 million, and Astral may see outflows of $133 million.
According to Nuvama Alternative, Biocon shares are at a crucial juncture, becoming the only one currently in the "borderline territory" during the MSCI review process. The brokerage notes that Biocon needs to trade around ₹447 apiece to enter the high-convictions inclusions list, while the stock is currently trading around levels of ₹435. This represents a critical threshold that could determine whether the company remains in the index or faces potential exclusion.
As reported by Nuvama, the high-probability inclusions and exclusions could drive net passive inflows into India of about $2.3 billion. This represents a significant potential influx into the Indian equity markets through passive investment vehicles. The rebalancing process will affect the composition of major index-tracking funds and ETFs that follow the MSCI India Standard Index, with changes taking effect from August 31 following the August 13 review announcement.
