MSCI likely to include Zomato among 7 Indian stocks to its standard index
MSCI is likely to include seven Indian stocks to its standard index as part of its semi-annual review. Likely inclusions could result inflows of about Rs 10,500 crore into these seven stocks by the end of this month.
Stocks such as Tata Power, SRF, Mphasis, Godrej Properties, Mindtree, IRCTC, and Zomato are most likely to be included whereas IPCA Laboratories and REC stand a chance of getting excluded from the index
MSCI will announce the changes on November 12.
If included Tata Power could see an inflow of Rs 1,800 crore. SRF’s inclusion could result in passive fund purchases worth Rs 1,733 crore. Mindtree and IRCTC can see passive flows of Rs 1,500 crore and 1,283 crore, respectively. Zomato if included can see inflow of Rs. 153 crore in near future. Once included the prices of such scrips can skyrocket in the short span.
MSCI indices are widely tracked globally, with several passive funds replicating their portfolios according to the stock weightages of its indices.