MSCI Rejig: Paytm, Fortis among Standard Index inclusions; Tata Elxsi dropped

Index services provider MSCI has announced changes to its India Standard and Smallcap indices on Thursday, November 6. Four stocks have been included to the MSCI India Standard Index, while two have been dropped.

Fortis Healthcare, One97 Communications or Paytm, GE Vernova T&D, along with Siemens Energy India are the four inclusions to the Standard index, while Tata Elxsi and state-run Container Corporation or CONCOR, have been excluded from the index and moved to the Smallcap category.

MSCI also stated that besides these inclusions and exclusions, eight stocks will see an increase in their weightage, while six will see a decline. As a result, India's weightage in the MSCI Standard Index will rise to 15.6% from 15.5% earlier, with the total number of representing companies increasing to 163 from 161 earlier.

Among stocks that will see an increase in their weightage include Asian Paints, Apollo Hospitals, Lupin, SRF, Suzlon Energy, Yes Bank, Alkem Laboratories, and Jubilant Foodworks. On the flip side, Samvardhana Motherson, Dr. Reddy's Laboratories, REC, Zydus Lifesciences, Bharat Forge and Colgate-Palmolive India are stocks that will see a decline in their respective weightage.

According to Nuvama Alternative & Quantitative Research, Fortis and the three other inclusions to the Standard Index will see inflows between $252 million to as high as $436 million, while the two exclusions will see outflows of up to $162 million.

Stock	Inflows / Outflows ($ Million)
Fortis Healthcare	+436
Paytm	+424
GE Vernova T&D	+351
Siemens Energy India	+252
Tata Elxsi	-162
CONCOR	-146

Among stocks that will see an increase in their weightage, Asian Paints is likely to receive inflows worth up to $95 million, according to Nuvama Alternative.

Stock	Inflows ($ Million)
Asian Paints	95
Apollo Hospitals	41
Lupin	35
SRF	34
Suzlon Energy	30
Yes Bank	28
Alkem Labs	27
Jubilant Foodworks	15

Conversely, stocks like Samvardhana Motherson and Dr. Reddy's, whose weightage will be reduced, may see outflows of up to $50 million.

Stock	Outflows ($ Million)
Samvardhana Motherson	-53
Dr. Reddy's Laboratories	-51
REC	-47
Zydus Lifesciences	-45
Bharat Forge	-31
Colgate-Palmolive India	-29

Besides Tata Elxsi and CONCOR who have been moved to the Smallcap index, ACC, Honeywell Automation, Leela Palaces Hotels, and Blue Jet Healthcare are some inclusions to the index, while a whole host of stocks including Restaurant Brands Asia, Rain Industries, Raymond, Balaji Amines, Quess Corp among others have been excluded from the index.