MSCI Global Index rejig: IndusInd Bank, Tata Motors, Suzlon get added

MSCI Global Standard Index has decided to add 9 Indian stocks including IndusInd Bank, Tata Motors DVR, Suzlon Energy and One 97 Communications, according to the announcement by the index provider.

The other stocks to be added to the index include Tata Communications, APL Apollo Tubes, Macrotech Developers, Persistent Systems and Polycab India.

IndusInd Bank may attract $290 million in inflows. Suzlon might receive $264 million, Persistent Systems may see an inflow of around $258 million, One97 Communications may get around $163 million, and APL Apollo might get $227 million worth of inflows, according to a report by Nuvama Alternative & Quantitative Research.

MSCI has decided not to delete any stocks from the India index at the moment.

Recently, Suzlon Energy posted over 81 per cent rise in consolidated net profit to Rs 102.29 crore for September quarter 2023-24 mainly due to decline in expenses. The stock has zoomed over 35% in one-month period.

The changes in MSCI Global Standard Indexes' constituents will be effective at the close of November 30 trading day.

Shares of IndusInd Bank are up 4 per cent in one month and 23 per cent in six months. The Benchmark Nifty50 is down 1.5 per cent in the past one month and has gained 6 per cent in the past six months. Similarly, shares of Suzlon have gained 37 per cent in the past one month and have zoomed over 4.5 times in six months. However, the rise solely can’t be attributed to index inclusion.

Close to two domestic dozen stocks are seen getting added to the MSCI Small Cap Index. Some of these include Gokaldas Exports, SJVN, Hindustan Construction, and PTC India. About a dozen stocks could get excluded from the index and these include Vodafone Idea, Dalmia Bharat, and Indian Bank.