- 31 May 2023
- ICICI Securities
India likely to receive $1.1 billion during MSCI rebalancing exercise
News: MSCI has announced few changes and we are likely to witness volatile move ahead of the effective dates of these changes ( 1st June). Hence on Wednesday ( May 31st), large moves are likely to be seen in some of the heavyweights.
Views: The new additions in MSCI India index like Max Healthcare, Sona BLW and HAL have seen significant price performance recently. We can expect some pause after the activity in these stocks. At the same time, along with Kotak Bank, stocks like ONGC, Maruti and Ultratech Cement have seen increase in weights while heavyweights like Infy, TCS and HDFC have seen weight reduction.
On a net basis, India is expected to receive some $1.1 billion flows into market out of which a major pie of nearly $700 million may be seen in Kotak Bank only. The recent outperformance seen in some of the above names can be attributed to the same.
Impact: Neutral