MSCI May rejig to trigger $3.2 billion inflows into 17 stocks

Global passive funds, such as exchange-traded funds (ETFs), structure their portfolios based on these indices. As a result, any inclusion or exclusion and change in composition lead to these funds adjusting their allocations to these stocks.

The total inflow on account of the stock inclusions will be almost $3.2 billion, said ’ Senior Vice President Sriram Velayudhan.

According to an estimate by IIFL Alternate Research, PB Fintech is expected to witness an inflow of $250 million if included in the MSCI index, while Zydus Life, Phoenix Mills, Sundaram Finance, , and are anticipated to receive an inflow between $200 and $230 million.

Other stocks that are likely to be included in the MSCI index, according to IIFL, include , Oracle Financials, , , Indus Tower and .

parent One97 Communications is likely to be excluded from the index, which may result in an outflow of $90 million, IIFL said. Paytm stock plunged 52% in the past six months.