MSCI rejig could bring $2.3 billion into Indian stocks

Mumbai: The upcoming MSCI rebalancing of its Standard Index could trigger passive inflows of about $2.3 billion into Indian stocks, with as many as 12 additions and three deletions likely in the August review, according to JM Financial.

The global index provider is scheduled to announce the changes on August 12 after trading hours.

The rebalancing will be effective August 31.Index changes result in flows into these stocks because trillions of dollars in global passive funds shape their portfolios based on their benchmarks.

When a stock is added or removed, index-linked ETFs and mutual funds are forced to buy or sell to mirror the index composition.JM said Adani Green Energy, Groww (Billionbrains Garage Ventures) and Adani Energy Solutions are high-probability candidates for inclusion in the MSCI India Standard Index.

Ather Energy is a medium-probability candidate, while Lenskart Solutions and Steel Authority of India (SAIL) are low-probability candidates for inclusion. ...