MSCI Global Standard Index review: PFC, REC among 8 entrants; ACC excluded

The MSCI Global Standard index, as part of its August review, shared a list of stocks that shall be included and excluded effective September 1, 2023.

Around eight stocks will be make an entry to the index, which includes Power Finance Corporation (PFC), REC, HDFC Asset Management Company (AMC), IDFC First Bank, Astral, Cummins India, Supreme Industries, and Ashok Leyland.

According to a Nuvama Alternative and Quantitative Research, PFC and HDFC AMC are likely to see inflows of $203 million and $153 million, respectively.

On the other hand, IDFC First Bank, Ashok Leyland, Cummins India, and Astral will attract inflows worth $204 million, $196 million, $173 million, and $170 million, respectively.

"The entry of REC and Supreme Industries into the index was a surprise as they were strong contenders for the November 2023 review," the research note added.

Cement manufacturer ACC, however, will be excluded from the index, resulting in an outflow of $92 million, as per the Nuvama report.

That said, the aforementioned stocks were selected via the NOC route, with India receiving six NOC slots, highest seen in recent times.