Power Finance Corporation Ltd., REC Ltd., HDFC AMC and IDFC First Bank are among the eight stocks that will be included in the MSCI Global Standard Index.

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The other four names include Astral, Cummins India, Supreme Industries and Ashok Leyland.

Cement manufacturer ACC Ltd. will be excluded from the index. The announcements came as part of MSCI's global standard index review.

All the changes are effective from September 1, 2023.

According to Nuvama Alternative and Quantitative Research, PFC and HDFC AMC are likely to see inflows of $203 million and $153 million respectively.

On the other hand, IDFC First Bank is likely to see inflows of $204 million, while Ashok Leyland, Cummins India and Astral will attract inflows worth $196 million, $173 million and $170 million based on their calculations.

ACC's exclusion is likely to result in outflows worth $92 million, according to the Nuvama note.

Nuvama Alternative & Quantitative Research called the entry of REC and Supreme Industries into the index as a surprise, adding that they were strong contenders for the November 2023 review. "It is worth noting that the aforementioned stocks were selected via the NOC route, as this time, India got six NOC slots, which is one of the highest seen recently," the note said.

With regards to IndusInd Bank's inclusion in the index, Nuvama said that if foreign headroom increases by 1.5 percent in the current quarter, then the stock can make the cut.

(Edited by : Hormaz Fatakia)

First Published:Aug 11, 2023 5:32 AM IST