MSCI Rejig: Paytm, Coforge, Federal Bank among likely inclusions, IndusInd Bank weight to double in February rebalancing | Stock Market News
Source: Live Mint
Paytm, Coforge, Federal Bank are among the top contenders to be included in the MSCI India Standard Index in its upcoming rebalancing. MSCI rebalancing announcement is scheduled for February 11 after market hours and will be effective from March 3.
According to brokerage firm JM Financial, there is high-probability for inclusion of Coforge, Fortis Healthcare, One 97 Communications, the parent company of fintech giant Paytm, and Coromandel International to be included in the MSCI index.
Additionally, Federal Bank, Blue Star, GE Vernova TD India and Uno Minda have a low probability of inclusion in the index.
Estimated Inflows
Coforge is expected to witness the highest inflow of passive funds to the tune of $293 million and could see 3.0 million shares traded over 4.4 days due to the estimated inclusion in the MSCI Standard Index. Fortis Healthcare might witness $176 million inflows and 24.4 million shares changing hands over 15.6 days.
Paytm share is expected to receive an inflow of $69 million for 2.8 million shares spread over 20.1 days. Coromandel International could experience inflows worth $156 million for 7.3 million shares across 18.3 days.
In the low-probability inclusion category, Federal Bank is projected to garner $137 million in inflows for 25.2 million shares traded over 5.0 days, while Blue Star could see $143 million worth of buying. GE Vernova TD India (GVTD) is anticipated to attract $104 million in inflows and Uno Minda is similarly forecast to draw $104 million inflows.
IndusInd Bank’s Weight to Double
JM Financial expects IndusInd Bank’s weight in the index to double, resulting in a buying flow of $145 million. This could translate into around 12.2 million IndusInd Bank shares being traded — approximately three times the bank’s average daily volume.
The official MSCI announcement on February 11 will confirm any actual changes to index composition, which will then take effect from March 3.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
