Three stocks namely Federal Bank Ltd, Multi Commodity Exchange of India Ltd (MCX) and National Aluminium Company Ltd are likely to see passive inflows to the tune of $1.2 billion following their MSCI India inclusion, with stocks such as Adani Power Ltd, Trent Ltd and BPCL also likely to see inflows on increase in weights. Federal Bank is seen buying of 16.5 crore shares worth $491 million. MCX is seen attracting $373 million in inflows while Nalco could attract $308 million in passive inflows, Nuvama Alternative & Quantitative Research suggested in a note.

These are the five stocks, others being Adani Energy Solutions Ltd and Hitachi Energy India Ltd that global index provider added to its India Domestic index today. A float adjustment would mean Adani Power, BPCL, Nykaa and Trent may see inflows to the tune of $54 million, $41 million, $25 million and $5 million, respectively. 

Hyundai Motor India, Kalyan Jewellers and Rail Vikas Nigam are expected to see outflows of $281 million, $137 million and $136 million, respectively, on index exclusion. Ten stocks namely Hindustan Unilever Ltd (HUL), Bajaj Finance, Tata Consultancy Services (TCS), ONGC, UltraTech Cement, Infosys, Hindustan Aeronautics Ltd, Coal India, Mahindra & Mahindra and Nestle India are expected to see 109-204 million outflows. 

Inclusion in MSCI India Smallcap may result in inflows for Jubilant FoodWorks, Kalyan Jewellers, IREDA, PhysicsWalla, Pine Labs, Jain Resource Recycling, Emmvee Photovoltaic and Anupam Rasayan by up to $25 million. Exclusion would results in outflows for Federal Bank, MCX, Nalco, GHCL, GMM Pfaudler by up to $73 million.  

Net-net, India’s weight in the MSCI Standard Index will remain steady at 12.3 per cent against 12.4 per cent with the total number of represented companies remains static at 165. As the small-cap universe remained under pressure, the index will see over a dozen exclusions in India, with the stock count reducing from 474 to 459 post-rejig.

As MSCI has implemented changes to its float calculation methodology, which has resultant in several weight adjustments across stocks. The adjustment will take place on 29th May 2.