12 stocks likely to enter MSCI index in May rejig, trigger $2 billion inflows. Paytm to exit

The highest inflows will be seen in Indus, Phoenix, and (Policy Bazaar) at $229 million, $224 million, and $223 million, respectively, and the inclusion comes on the back of a strong rally in all these stocks.

Apart from (150% returns in 1-year), PB Fintech (104%) and (139%), the other likely inclusions will be (98%), (196%), (120%), (114%), (66%), (161%), (60%), (96%) and (148%).

Paytm will be a high conviction exclusion, causing outflows of $77 million from India, the domestic brokerages' note said. Paytm's exclusion comes after a nearly 40% correction in the share price following the Reserve Bank of India's ban on its Paytm Payments Bank. Meanwhile, Berger has yielded nearly 9% returns over 1 year.

The MSCI May 2024 rejig cut-off commenced on April 17 and will extend until April 30 and according to Nuvama's assessment, the cut-off should ideally be concluded between April 17 and April 19. Since Indian markets were closed on April 17 on account of Ram Navami, the cut-off will be based on the April 16 closing, it said.

The announcement is scheduled for May 14 with adjustments getting implemented on May 31.

India has been maintaining an unparalleled momentum compared to its emerging market peers for quite some time now, and Nuvama sees this momentum to remain robust, going ahead.

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India currently holds an 18.2% weight in MSCI EM, and Nuvama expects this to move closer to 20% with more scope for inclusions in forthcoming reviews.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)