MSCI Standard Index: Jindal Stainless, PNB, BHEL, Oberoi Realty may get into MSCI Standard Index in Feb rejig

Mumbai: Jindal Stainless, Punjab National Bank, BHEL, and Oberoi Realty are anticipated to be included in the MSCI Standard index during the February 2024 index reconfiguration, as per estimates by Nuvama Alternative & Quantitative Research. These four stocks could potentially witness inflows ranging between $140 million and $150 million each if included in the MSCI index.

The global cut-off period for the selection of stocks to the MSCI Global Standard index spans from January 18 to 31. MSCI will announce the changes in constituents for the MSCI global standard indices on February 12. The final changes will take place on February 29.

Jindal Stainless Steel, which has surged by 73% in the last six months, may experience an influx of ₹1,237 crore or $149 million. Similarly, Punjab National Bank, with a 70% rally over the same period, could attract an inflow of ₹1,179 crore ($142 million) from passive funds. If included in the MSCI Global Standard Index, BHEL and Oberoi Realty are anticipated to receive inflows of ₹1,145 crore or $138 million.

MSCI indices are widely tracked globally, with several passive funds replicating their portfolios according to the stock weights of their indices. These funds will be forced to buy or sell a stock if its weight in the index is increased or reduced.