Zydus Lifesciences, Mankind Pharma, Bosch, Jindal Stainless, Oberoi Realty, Phoenix Mills, Sundaram Finance, and PB Fintech are among 17 stocks that are likely to be included in the MSCI Standard index during the May 2024 index reconfiguration, according to estimates by IIFL Alternative Research.
MSCI will announce the changes in constituents of the MSCI global standard indices on May 14, while the changes will take place on May 31.
Global passive funds, such as exchange-traded funds (ETFs), structure their portfolios based on these indices. As a result, any inclusion or exclusion and change in composition lead to these funds adjusting their allocations to these stocks.
The total inflow on account of the stock inclusions will be almost $3.2 billion, said IIFL Securities’ Senior Vice President Sriram Velayudhan.
According to an estimate by IIFL Alternate Research, PB Fintech is expected to witness an inflow of $250 million if included in the MSCI index, while Zydus Life, Phoenix Mills, Sundaram Finance, NHPC, and Torrent Power are anticipated to receive an inflow between $200 and $230 million.
Other stocks that are likely to be included in the MSCI index, according to IIFL, include Solar Industries, Oracle Financials, Oil India, Canara Bank, Indus Tower and JSW Energy.
Paytm parent One97 Communications is likely to be excluded from the index, which may result in an outflow of $90 million, IIFL said. Paytm stock plunged 52% in the past six months.
FAQs
Zydus Lifesciences, Mankind Pharma, Bosch, Jindal Stainless, Oberoi Realty, Phoenix Mills, Sundaram Finance, and PB Fintech are among 17 stocks that are likely to be included in the MSCI Standard index during the May 2024 index reconfiguration, according to estimates by IIFL Alternative Research.
What is MSCI rebalancing in stock market? ›
MSCI's quarterly rejig will come into effect following the market close on May 31, leading to potential inflows of around $2 billion into the Indian equity markets. MSCI's quarterly rebalancing will lead to 13 new stocks being added to the MSCI Global Standard Index, while three stocks will be excluded.
Which stocks are going to enter MSCI index? ›
MSCI Smallcap Index Adjustments
MSCI Smallcap Index will see the addition of 29 stocks including Indraprastha Gas, Paytm, HUDCO, INOX India, Dilip Buildcon and Orchid Pharma. 15 stocks such as Borosil, Force Motors, Brightcom Group and Greaves Cotton will be removed from the Smallcap Index.
What is MSCI in stock market? ›
The Bottom Line. Morgan Stanley Capital International, or MSCI, is a firm that provides investment data and analytics services to investors. It was formed in 1986 when Morgan Stanley bought the licensing rights to data from Capital International.
How many stocks are in the MSCI index? ›
The MSCI World Index captures large and mid-cap representation across 23 Developed Markets (DM) countries*. With 1,464 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
What happens when a stock is added to the MSCI index? ›
The inclusion of a country's stocks in the MSCI Index can increase its attractiveness to foreign investors and potentially lead to increased capital inflows.
What does rebalance mean in stocks? ›
Essentially, rebalancing means selling some assets in your portfolio and buying others to help maintain your target asset allocation. This is especially important during times of significant market volatility. Understanding rebalancing–and doing it well–is important in helping you meet your investing goals.
Who is the largest shareholder of MSCI? ›
Morgan Stanley, a global financial services firm, is the majority shareholder of MSCI Inc.
What is the difference between S&P and MSCI? ›
MSCI World offers exposure to a broader range of global equities across developed markets, providing investors with more international diversification compared to the S&P 500, which focuses solely on U.S. large-cap stocks.
How often should I MSCI rebalance? ›
Indexes typically rebalance on a consistent schedule, but the timing can vary by provider. For example, S&P Dow Jones Indices typically rebalances indexes on the third Friday at the end of each calendar quarter, while rebalances in MSCI indexes occur on the last business day of February, May, August and November.
Morgan Stanley Dean Witter is the majority shareholder of MSCI, and The Capital Group Companies, Inc., a global investment management group, is a minority shareholder. Morgan Stanley Dean Witter is a global financial services firm and a market leader in securities, asset management and credit and transaction services.
How does MSCI make money? ›
It makes money from licensing the indexes to the financial companies that create the ETFs that mirror them. MSCI.
Is MSCI a good stock to buy? ›
MSCI Inc's analyst rating consensus is a Moderate Buy. This is based on the ratings of 11 Wall Streets Analysts.
Is MSCI an ETF? ›
Cost of MSCI World ETFs
The total expense ratio (TER) of MSCI World ETFs is between 0.10% p.a. and 0.50% p.a.. In comparison, most actively managed funds do cost much more fees per year. Calculate your individual cost savings by using our cost calculator.
What is the yield on MSCI stock? ›
Ratings - MSCI
Stable. 1.44% forward dividend yield.
What is the US MSCI index? ›
The MSCI US Equity Indexes are a domestic only series - independent from MSCI's Global Equity indexes – which reflect the investment opportunities in the US equity markets by market capitalization size, by value and growth investment styles and by sectors and industries.
What happens during index rebalancing? ›
Index rebalancing ensures that investors' portfolio adheres to their target asset allocation, preventing it from becoming overly concentrated in specific sectors or asset classes. This diversification helps to mitigate the impact of market fluctuations and reduces overall portfolio risk.
Should you rebalance index funds? ›
Why Rebalance an Index? The primary reason for rebalancing an index is to reflect an accurate collection of securities, and a proper weighting for each security, to maintain the stated objectives of the index. Over time, companies can grow, shrink, or change their business focus.
