Abhilash Pagaria, an analyst at Nuvama Alternative and Quantitative Research, stated that HDFC Bank, the leading private lender in India and the most significant stock in the NSE Nifty 50 benchmark, is poised to experience an increase in its weightage, potentially causing inflows of USD 1.8 billion.

India’s representation on the MSCI Global Standard Index, which monitors emerging market stocks, has reached a new all-time high. India is likely to attract around USD 3 billion in inflows into its equity markets.

India has closed the gap with China on the important MSCI index. As Abhilash Pagaria outlines China’s weightage on the index is expected to decrease from 24.8% to 24.2%, whereas India’s weight will rise from 19.2% to 19.8%.

The index weight adjustments will take effect after the close of markets on August 30. India’s weight could exceed 20% by the end of November.

Nuvama reported that this move is anticipated to result in approximately USD 2.7 billion to USD 3 billion in inflows into India. “Given the current pace and momentum in domestic equities, India could potentially surpass a 22% weightage by the year’s end” on the MSCI index, Pagaria remarked.

Bharti Airtel, Coal India, and Mphasis will increase their weightage on the index, while Maruti Suzuki India, LTI Mindtree, Ambuja Cements, Adani Enterprises, Yes Bank, and SRF will decrease.

Dixon Technologies, Vodafone Idea, Oil India, Zydus Lifesciences, Rail Vikas Nigam, Prestige Estates Project, and Oracle Financial Services will be included in the MSCI Emerging Markets index, while Bandhan Bank will be removed.

According to Nuvama, approximately 25 stocks will be added to the MSCI India Small-cap index. These stocks are expected to witness inflows of USD 3 million to USD 26 million.

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