MSCI November rejig: HDFC Bank, Voltas among key stocks likely to see $2.5 billion inflows; check details

The quarterly revamp in the Morgan Stanley Capital International (MSCI) indices - MSCI Standard, EM and Smallcap, will be effected from Monday.

According to experts, HDFC Bank and Voltas Ltd are likely to be the key beneficiaries of the latest rejig attracting a significant part of expected fund inflows of up to $2.5 billion.

HDFC Bank is likely to see inflows of around $ 1.9 billion due to the increase in its weightage in the MSCI indices. The MSCI had announced an increase in the weightage of the stock in its August review but implemented the adjustment in two tranches.

HDFC bank shares gained nearly 2% to hit a high of ₹1,786 per share on the NSE on Monday, as more than 75 lakh shares of the company traded. The stock was trading up 1.6% at ₹1,779 on the NSE at 11:50 am.

Voltas Ltd, which is expected to attract $300 million in inflows upon its inclusion in the MSCI indices, rose to 3.6% on Monday. The stock later traded 1.9% higher at ₹1,685 apiece.

In the November rejig, five new Indian stocks were added to the MSCI Emerging Markets and MSCI Standard Index, bringing India's total to 156.

Following the reshuffle, India’s weightage in the MSCI EM Index will increase to 19.8% from 19.3%, the second highest after China, which has a weightage of 27% in the index.

Among the stocks added to the MSCI Standard/EM indices are Voltas, BSE, Alkem Laboratories, Kalyan Jewellers and Oberoi Realty. BSE is set to attract $260 million, Kalyan Jewellers $241 million, Oberoi Realty $215 million and Alkem Labs $201 million after the rejig.

Among the 13 stocks being added to the MSCI Smallcap Index are Eureka Forbes, Aadhaar Housing Finance, Signature Global, PC Jewellers, Indegene and DCM Shriram.