Slew of inclusions to MSCI Smallcap index to attract inflows worth $142 million

Three stocks also migrated from the MSCI Smallcap to the MSCI Global Standard Index.

The latest revision of the MSCI's Smallcap index saw the addition of as many as 42 Indian stocks to the list, including names such as SJVN, Gokaldas Exports, PTC India, NLC India. The slew of inclusions to the smallcap index could attract cumulative flows of up to $142 million in these counters, as calculated by Nuvama Alternative & Quantitative Research.

The adjustments will come into effect from market close on November 30.

Among the stocks added to the list, SJVN is likely to witness maximum inflows of around $9 million, followed by Gokaldas Exports at $6 million. Inflows could also drive up to $5 million for PTC India, NLC India, Hindustan Construction, Electrosteel Castings, Arvind, and Gateway Distriparks.

Meanwhile, Concord Biotech, Astra Microwave, Orient Cements, Tilaknagar Industries, Gabriel India, and Jai Balaji Industries are likely to see increased inflows worth $4 million each.

Some other stocks added to MSCI Smallcap index include DB Corp, Pricol, Ashoka Buildcon, Shyam Metallics, Texmaco Rail & Engineering, Max Infra, Jain Irrigation Systems, Electronics Mart India, Force Motors, MOIL, and Dodla Dairy, which will also attract inflows in the range of $2-3 million across these counters.

The news of an inclusion to the MSCI Smallcap index also ushered strong gains for these stocks as most of them, excluding MOIL, surged 1-7 percent.

Exclusions

Moreover, three stocks, Suzlon Energy, APL Apollo Tubes and Persistant Systems, were also excluded from the MSCI Smallcap index as they migrated to the MSCI Global Standard index.

Also read | MSCI index rejig adds Paytm, IndusInd Bank, Persistent Systems, excludes none from India

Apart from these, Jindal Stainless was also thrown out of the list and hence could see outflows worth $26 million followed by Solar Industries at $24 million, and Dalmia Bharat and Oberoi Realty at $23 million each.

Other major names that were excluded from the MSCI Smallcap index were BHEL, ACC, Vodafone Idea, Linde India, Thermax, Indian Bank, Escorts Kubota, Oil India, Tarsons Products, and Delta Corp. In total, 19 stocks were excluded from the MSCI Smallcap index as against 42 stocks that were added.

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