Vi shares likely to join MSCI Global Standard index in August rejig, says Nuvama

Nuvama in its latest note expects Vodafone Idea Ltd to be included in MSCI Global Standard index in the August review. Oberoi Realty, Zydus Lifesciences, SAIL and Prestige Estates are a few stocks that may need up to 10 per cent rise to enter MSCI index, it said.

If added, Vodafone Idea shares may attract $213 million inflows, followed by Oberoi Realty, Zydus Lifesciences and Prestige Estates, which may attract $136-137 million inflows. The official cut-off date is the third week of July and the MSCI announcement is likely on August 13.

Nuvama sees Thermax ($130 million), FSN E-Commerce Ventures Ltd ($127 million), Alkem Laboratories ($126 million) and SAIL ($124 million) as other likely inclusions. Oil India, ACC and United Breweries are a few stocks which need 10-20 per cent rise for MSCI inclusion.

India’s weight in the MSCI Emerging Market Index stands at 18 per cent, a significant leap from just 8 per cent in early 2020. By the second half of 2024, Nuvama anticipates crossing the 20 per cent threshold in the EM Index.

The domestic brokerage has reaffirmed its May 2024 conviction names for Standard and Small-cap Index. “The May review will entail another action-packed rejig as we anticipate close to $2 billion inflow into India. The pre-emptive price action in most of the names are already factored in,” it said.

Indus Towers ($238 million), Phoenix Mills ($217 million), PB Fintech ($223 million), Sundaram Finance ($209 million) and Torrent Pharma ($179 million) are a few stocks that Nuvama sees in May inclusion list. It sees Waaree Renewables, Vedant Fashions, Vedant Fashions, R R Kabel and Sanghvi Movers, among others as potential MSCI Smallcap index entries in May.

As of now, India’s stock count in the MSCI Standard Index/EM Index is 136, and Nuvama anticipates it to reach around 145 by the forthcoming May review. Business Today