MSCI November rejig: BSE, Voltas, and Oberoi Realty among 5 stocks added to Global Standard Index; check other changes

MSCI has added five stocks, viz., Alkem Laboratories, BSE, Kalyan Jewellers India, Oberoi Realty, and Voltas, to its Global Standard index. 

No securities have been deleted from the index. 

There will be no exits from the index. 

In the MSCI India Domestic Small Cap Index, 15 securities have been added while 10 scrips have been removed. The list of stock additions includes Aadhar Housing Finance, Advanced Enzyme Tech, JSW Holdings, Eureka Forbes, Bondada Engineering, and DCM Shriram, among others. 

The stocks that exit the index include BSE, GMR Airports, and Voltas, among others. 

HDFC Bank update

India's largest private lender, HDFC Bank, will see the second tranche of its weightage increase on the index, leading to more inflows. 

MSCI, in its earlier press release, said it would maintain HDFC Bank in MSCI Indexes with an increase in the Foreign Inclusion Factor (FIF) from 0.37 to 0.56 as of the close of August 30, 2024 (effective September 2, 2024), coinciding with the August 2024 Index Review. 

HDFC Bank is subject to a Foreign Ownership Limit (FOL) of 74% and an adjustment factor of 0.5. Based on the latest available shareholding disclosure, the foreign room is above 25%.

The remaining increase of the adjustment factor from 0.75 to 1 would be implemented as part of the November Index Review in the event the foreign room continues to be at least 20% at that time, the press release added. 

As per calculations by Nuvama, the weight increase may trigger passive inflows of up to $1.88 billion for the banking behemoth.