MSCI rejig: Laurus, Lenskart among 4 stocks set for $1.5 bn inflows

Ahead of the MSCI index reshuffle, which will be effective from September 1 onwards, several stocks that will be included and excluded remain in focus on Monday. The changes in the index were first announced on August 13 and will be reflected in trade at Monday’s close. 

The August 31 MSCI rebalancing is the first major MSCI rejig after the Closing Auction Session (CAS) was introduced on August 3 on the NSE and BSE for stocks with derivatives contracts. 

 

The MSCI Standard Index will see four additions, Adani Energy Solutions, Billionbrains Garage Ventures, Laurus Labs, and Lenskart Solutions; meanwhile, three stocks, Balkrishna Industries, SBI Cards, and Astral, will face deletions from the index.

 

 

At last check, Adani Energy was down 1.5 per cent to trade lower at  ₹1,557.70, meanwhile, Billionbrains Garage (Groww) was up 0.75 per cent, trading higher at ₹192.92. Similarly, Lenskart Solutions was up 2.7 per cent at ₹653.50 apiece. However, Laurus Labs declined 1.2 per cent to trade at ₹1,914.70. 

The MSCI Standard Index inclusions are expected to attract significant passive inflows. Data from Nuvama points that Laurus Labs could see an estimated $598 million inflow, followed by Lenskart Solutions at $352 million, Adani Energy Solutions at $310 million, Billionbrains Garage Ventures (Groww) at $256 million, Adani Enterprises at $202 million, and Adani Ports & SEZ at $77 million.

 

Among stocks seeing a weight increase, JSW Energy is estimated to receive around $34 million of inflows, followed by Adani Power at $28 million and GMR Airports at $22 million. Swiggy could see an estimated $13 million inflow following the increase in its MSCI weight. Among the heavyweights, Eternal is likely to see an inflow of $674 million, Adani Enterprise is expected to see an inflow of $202 million; meanwhile, Adani Ports is likely to see inflows of $77 million.

 

On the other hand, MSCI exclusions are expected to trigger sizeable passive outflows. Balkrishna Industries is expected to see an outflow of $169 million, SBI Cards could see an outflow of $143 million, and Astral is expected to see an outflow of $138 million.

 

Stocks facing weight reductions are also expected to see outflows, with Relaince Industries expected to see a massive outflow of $523 million, outflows in Jio Financial Services are estimated at $61 million, Indian Hotels at $32 million, Aditya Birla Capital at $21 million, and Colgate-Palmolive India at $16 million.

 

In the MSCI Small Cap Index, 12 stocks will be added and 19 removed, resulting in a net reduction of seven constituents. 

 

The 12 additions include Amagi Media Labs, Ather Energy, Clean Max Enviro Energy Solutions, E2E Networks, Embassy Developments, Patanjali Foods, Rubicon Research, Sedemac Mechatronics, Sky Gold and Diamonds, United Breweries, Urban Company, and WeWork India Management, traded in a mixed range. Among the pack, the top gainer was Ather Energy up 3.8 per cent intraday, and the top laggard was E2E Networks down 2.5 per cent.

 

The index will also see 19 deletions, including Aurionpro Solutions, CMS Info Systems, Entero Healthcare Solutions, GMR Power & Urban Infra, ICRA, Latent View Analytics, Laurus Labs, MAS Financial Services, Mastek, MOIL, Network18 Media & Investments, Nippon Life India Asset Management, PTC India, Rallis India, Rashtriya Chemicals & Fertilizers, RattanIndia Power, Star Cement, Transrail Lighting and Valor Estate. 

 

 

The MSCI conducts periodic index reviews to reassess its global equity constituents based on criteria such as market capitalisation, liquidity, and free-float.

 

MSCI’s global indices are widely tracked by institutional and passive investors seeking exposure to emerging markets. Consequently, such index revisions often lead to large portfolio flows, making them closely watched events in global equity markets.