MSCI Index rebalancing likely to drive $2 billion into Indian equities on May 31

Indian equity markets are poised for substantial inflows exceeding $2 billion on May 31st as a result of adjustments to the MSCI Global Standard Index and MSCI India Smallcap Index.

The quarterly rebalancing, which was announced on May 15 and came into effect on May 31, includes the addition of 13 stocks and the removal of three from the MSCI Global Standard Index. The new inclusions are Bosch, Canara Bank, Indus Towers, Jindal Stainless, JSW Energy, Mankind Pharma, NHPC, PB Fintech, Phoenix Mills, Solar Industries, Sundram Finance, Thermax and Torrent Power.

Among these, PB Fintech is projected to receive the highest inflow, estimated at approximately $232 million.

Conversely, three stocks have been excluded from the index: Berger Paints, Indraprastha Gas, and One97 Communications (Paytm). These stocks are expected to experience outflows ranging between $50 million and $100 million.

The MSCI India Smallcap Index will also see notable changes, with 28 additions and 14 deletions. Key new entrants include Aditya Birla Sun Life AMC, DOMS Industries, Gillette India, RR Kabel, VA Tech Wabag, and Tips Industries.

Meanwhile, stocks like Indoco Remedies, Polyplex Corporation, Alok Industries, Rajratan Global Wire, and Dreamfolks Services have been removed from the Smallcap index in this latest round of rebalancing.