MSCI Index Rejig: Coforge, Paytm, Federal Bank shares, among 7 likely entrants in Standard Index | Stock Market News

The upcoming MSCI index review for February 2025 is likely to bring significant changes, with five stocks having a high probability of migrating from the MSCI Small Cap Index to the Standard Index.

These anticipated inclusions in the MSCI Standard Index are Coforge, One 97 Communications (Paytm), Coromandel International, UNO Minda and Fortis Healthcare, according to estimates by brokerage firm Motilal Oswal Financial Services (MOFSL).

Additionally, GE T&D India and Federal Bank shares hold medium to low probabilities of inclusion.

Estimated Inflows

Coforge is expected to witness the highest inflow of passive funds $423 million due to the estimated inclusion in the MSCI Standard Index. Paytm and Coromandel International are expected to see flows of $197 million and $159 million, respectively.

UNO Minda and Fortis Healthcare may attract inflows worth $148 million and $249 million, while GE T&D India and Federal Bank are likely to receive $177 million and $257 million inflows, as per the brokerage estimates.

The cut-off period for the next MSCI Index review starts on January 20, 2025, and runs until January 31, 2025. MSCI will finalize the additions by selecting a single date during this window, with announcements slated for February 12, 2025. The changes will take effect from March 3, 2025.

Additionally, inclusion of Hyundai Motor India shares remains uncertain, with a medium-to-low probability due to its IPO lock-in period ending on January 16, 2025. This inclusion is contingent upon updated shareholding patterns before the cut-off date.

IndusInd Bank Weight Increase

IndusInd Bank shares are expected to undergo a weight increase in the MSCI Standard Index. Currently at 0.22%, its weight could double to 0.44% if foreign institutional investor (FII) holdings decrease by 0.03%.

As per MOFSL estimates, this adjustment could lead to additional inflows of approximately $200 million in IndusInd Bank shares.

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