MSCI index: Big winners and losses 2023

As part of its May 2023 reorganization, Morgan Stanley Capital International has announced the addition of Max Healthcare, Hindustan Aeronautics, and Sona BLW Precision to its India Standard Index.

According to Nuvama Alternative & Quantitative Research’s preliminary calculations, this could result in an influx of $295 million for Max Healthcare, $195 million for HAL, and $175 million for Sona BLW.

In contrast, the removal of Adani Transmission, Adani Total Gas, and Indus Towers from the MSCI India Standard Index could result in outflows of $201 million, $186 million, and $84 million, respectively.

Due to the fact that many exchange-traded funds and index funds are benchmarked against it, monitoring these changes is crucial. On May 31, the MSCI passive trackers will implement the changes.

Additionally, the index provider has revised its India Small Cap index.

KFin Technologies, Kaynes Technology, Bikaji Foods, Fusion Micro Finance, Syrma SGS Technology, Religare Enterprises, NMDC Steel, ACE, Ujjivan Small Finance Bank, Maharashtra Seamless, RVNL, and IRCON are among the new additions to the list.

Max Healthcare, Polycab India, Gillette India, Dhani Services, Radico Khaitan, Astec Lifescience, Dilip Buildcon, Thyrocare, and PC Jewellers have been removed from the index.

Weight increases and decreases

MSCI has announced that Kotak Mahindra Bank will receive the largest weight increase, which could result in an inflow of $810 million. In the March quarter, foreign investors’ stake in the bank decreased by 1.47 percentage points, thereby expanding the foreign capacity and making it eligible for a weight increase.

The MSCI index will also increase the weight of Maruti Suzuki ($87 million), ONGC ($74 million), Ultratech Cement ($72 million), Interglobe Aviation ($63 million), and Zomato ($59 million).

Reliance Industries, Infosys, ICICI Bank, JSW Steel, HDFC, and Tata Consultancy Services have experienced notable weight reductions. This may result in cash outflows of $155 million, $134 million, $94 million, $80 million, $71 million, and $61 million, respectively.

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About the Author: Sanjh Vishwakarma

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