Torrent Pharmaceuticals is positioned to receive significant passive inflows following MSCI's decision to increase both its Number of Shares (NOS) and Foreign Inclusion Factor (FIF) in the MSCI Global Standard Index. According to Nuvama Alternative & Quantitative Research, the pharmaceutical company is expected to see passive inflows of approximately $167 million (₹1,608.67 crore) after the index changes take effect. The adjustments will become effective from July 17, following the market close on July 16.
As reported by Nuvama, the expected inflows represent nearly 5.5 times Torrent Pharma's average daily trading volumes, potentially making the stock one of the key beneficiaries of the latest MSCI adjustment. Passive inflows occur when index-tracking funds rebalance their portfolios to reflect changes announced by index providers, often leading to increased demand for stocks receiving higher weights in the benchmark.
RBL Bank is expected to witness passive selling after MSCI decided to remove the lender from the MSCI Global Small Cap Index. According to Nuvama, the deletion will also become effective after the market closes on July 16, with implementation from July 17. The exclusion is linked to a reduction in the bank's foreign ownership headroom, making it ineligible under MSCI's methodology.
As reported by Nuvama, the change could trigger passive outflows of more than $25 million (₹241.06 crore) from RBL Bank as index-linked funds adjust their holdings. The MSCI index reviews are closely tracked by market participants because they often result in sizeable one-time buying or selling by exchange-traded funds and other passive investment vehicles that replicate the benchmark.
