In the latest reshuffling by Morgan Stanley Capital International (MSCI) on November 15, nine Indian stocks have been added to the MSCI Global Standard Index, with no stocks being excluded this time. 

The additions include Suzlon Energy, IndusInd Bank, One 97 Communications (parent company of Paytm), APL Apollo Tubes, Macrotech Developers, Persistent Systems, Polycab India, Tata Communications, and Tata Motors ‘A’ shares.

The MSCI Global Standard Indexes’ constituent changes are scheduled for November 30, 2023. The inclusion of these stocks reflects the ongoing changes in the Indian equity market. 

Post the rebalance, India’s stock count in the MSCI Global Standard Index will rise to 131, with its weights set to move close to 16.3%, up from the current 15.9%. This surge marks an all-time high representation for India in the Emerging Market index, nearly doubling its weight over the past three years.

According to Nuvama Alternative calculations, India is expected to receive passive inflows of close to $1.5 billion following the rejig. IndusInd Bank is anticipated to witness inflows of around $290 million, while Suzlon may see inflows worth $264 million, as per Nuvama Alternative. 

Other additions, including Persistent Systems, Paytm, APL Apollo, Polycab, Macrotech Developers, Tata Motors DVR, and Tata Communications, are also expected to attract significant inflows ranging from $163 million to $258 million.

Additionally, seven stocks, namely IDFC First Bank, Max Health, Paytm, Polycab, PFC, REC, and Supreme Industries, have been included in the MSCI India Domestic Index.

It’s important to note that passive funds closely monitor the MSCI indices and any inclusions or changes in weightage can lead to significant inflows or outflows from funds tracking these global indices.