MSCI addition of six stocks may rake in ~9,000 crore

As many as six stocks are expected to get added to the MSCI Standard Index next month. These stocks should cumulatively rake in over $1.23 billion (~9,000 crore) of passive inflows.

An analysis done by Brian Freitas, an analyst at independent research provider Smartkarma, shows Mindtree (estimated inflows of $198 million or ~1,460 crore), SRF ($243million or ~1,794 crore), IRCTC ($155 million or ~1,144 crore), Mphasis ($210 million or ~1,550 crore), Godrej Properties ($ 212 million or ~1,565 crore), and Zomato ($210 million or ~1,550 crore).

Market observers say these stocks may edge higher in the coming weeks. The review period for the price cutoff is October 18-October 29. MSCI is scheduled to announce the outcome of its 2021 Semi-annual Index Review (SAIR) on November 12. The changes will be implemented after the close of trading on November 30.

A separate analysis by Sriram Velayudhan, vice-president-alternative research of Iifl-institutional Equities, shows SRF and Mphasis may attract passive inflows of $228 million (~1,680 crore) and $202 million (~1,490 crore), respectively, on account of the index rejig.

Further, Mindtree and Godrej Properties can see inflows of $185 million (~1,365 crore) and $170 million (~1,255 crore), respectively.

Food delivery firm Zomato, which made its stock market debut in July, should be one of the three recent global listing to make it to the MSCI index

Another 18 are seen as potential inclusion candidates in the MSCI Small Cap index. Some of them are BSE, Easy Trip Planners and Angel Broking.

Analysts said the candidate inclusion list may change if stock prices change drastically in the run-up to the cut-off date.

The global index provider undertakes a comprehensive review for stocks where it analyses if they conform to the minimum size and other investability requirements.