MSCI August Rejig: Vodafone Idea, RVNL shares among 7 stocks to be included in India Index; Bandhan Bank to be excluded

Vodafone Idea, Rail Vikas Nigam Ltd. and Dixon Technologies are among the seven stocks that will be included in the MSCI India Index, which is part of the MSCI Global Standard Index, in its August reshuffle.

The seven stocks to be included in the MSCI India Index are RVNL, Vodafone Idea, Dixon Technologies (India), Oil India, Oracle Financial, Prestige Estates and Zydus Lifesciences.

However, Bandhan Bank will be excluded from the index.

All changes will be implemented as of the close of August 30, 2024, MSCI said in a release.

Most of these stocks have also been included in the MSCI India Domestic Index, along with the addition of Bosch and PB Fintech.

Meanwhile, HDFC Bank shares will see an increase in its weightage in the MSCI indices but that will take place in two tranches. 

The first one will happen after the current August review, while the second will take place after the November review, provided the foreign headroom remains at least 20%.

According to Nuvama estimates, after the August round of weightage increase, HDFC Bank is likely to attract inflows worth $1.5 billion inflows.

Meanwhile, MSCI India Domestic Smallcap Index has seen inclusion of 25 stocks, including Aurionpro Solutions, Bajaj Hindusthan Sugar, Inox Green Energy Services, Shakti Pumps, Inox Wind Energy, Max Estates, Heritage Foods, Gulf Oil Lubricants, among other, while eight stocks, including Cochin Shipyard, PB Fintech, Phoenix Mills, RVNL, IREDA, among others have been removed.

India is estimated to witness a net FII passive inflow worth $2.7 billion to $3 billion post the adjustment. Moreover, India’s weight in the MSCI Emerging Markets basket will now increase to around 19.80% from 19.4% as of May 2024.

Dixon Technologies are estimated to get the highest inflows worth $281 million, followed by Vodafone Idea shares which may see buying worth $278 million when the adjustments take place. RVNL shares are expected to receive inflows worth up to $219 million, according to Nuvama Alternative and Quantitative Research.