RIL, Infosys, ICICI Bank, HDFC Bank, TCS shares to see outflows on drop in MSCI weightages

Shares of Reliance Industries Ltd, ICICI Bank Ltd, HDFC Bank Ltd, Infosys Ltd and Tata Consultancy Services are among two dozen stocks that are likely to see up to $130 million in outflows following changes to MSCI indices. PI Industries, which has seen increase in weightage, may attract $16 million inflows, as per Nuvama Institutional Equities. All changes will be implemented as of the close of August 31.

Reliance Industries may see $130 million in outflows. It would be followed by ICICI Bank ($78 million) and Infosys ($77 million). HDFC Bank ($58 million) and TCS ($53 million) would be two other scrip seeing over $50 million in outflows. Axis Bank, Kotak Mahindra Bank, Bajaj Finance, Bharti Airtel, Larsen & Toubro, Wipro, Mahindra & Mahindra, ITC and Maruti Suzuki are some other stocks that are expected to see outflows.

Index aggregator MSCI also included and excluded a few scrips from MSCI Global Standard indices. MSCI added Power Finance Corporation Ltd (PFC), REC Ltd, Ashok Leyland Ltd and five other stocks, which could result in $150-200 million in inflows for the stocks.

The list included Cummins India, HDFC Asset management, IDFC First Bank, Supreme Industries and Astral Ltd. ACC, a Adani group stock, would be the only scrip that is excluded from the list. This stock is expected to see $75 million in outflows.

"A total of eight inclusions have been announced, aligning with our projections for six of them. However, two unexpected entries (REC & Supreme Industries) emerged as surprises. In our assessment, these were strong contenders for the November 23 review. It's worth noting that the aforementioned stocks were selected via the NOC route as this time India got six NOC slots which is one of the highest seen in my experience," said Abhilash Pagaria, Head, Nuvama Alternative & Quantitative Research.

Also, the MSCI made changes to its MSCI Global Small Cap indices, wherein it made 40 inclusions and 11 exclusions in MSCI India list. The inclusions included Mishra Dhatu Nigam, PTC Industries, Glenmark Life Sciences, Five Star Business Finance, Anant Raj, CPCL, Ather Industries, Ami Organics, Marksans Pharma, Newgen Software and Patel Engineering, among others.

Exclusions for the index include Tata Communications, Aditya Birla Capital, Ashok Leyland, IDFC First Bank, REC, NIIT, BEML Land Asset and Astral among others.

Also read: LIC shares in focus after 14-fold jump in Q1 profit

Also read: Multibagger tobacco stock to turn ex-dividend today; hit record high in previous session