Eternal shares may receive up to $650 million in inflows led by this positive trigger

A potential increase in its weightage during the upcoming MSCI rejig in August could lead to shares of Eternal Ltd. receiving inflows worth up to $650 million, according to Nuvama Alternative & Quantitative Research.

In its note, Nuvama Alternative highlighted that the MSCI August review cut-off window opened on Monday, July 20, and Biocon shares are at at a crucial juncture, becoming the only one that is currently in the "borderline territory."

Nuvama reiterated its assessment based on Day 1 of the cut-off period. Historically, the index has usually determined the cut-off within the first few days of its 10-day observation window.

Based on its assessment, Nuvama Alternative has highlighted four high-conviction stocks that could be included in the MSCI Standard Index and three of them who will be excluded on the index on a high-conviction basis.

As per Nuvama, the high-conviction inclusions include: Laurus Labs, Adani Enterprises, Lenskart and Groww. Based on Nuvama's assessment, Laurus Labs could get inflows worth over $500 million, while Billionbrains Garage Ventures, parent company of Groww, could see inflows worth up to $260 million.

Potential MSCI Inclusions	Potential Inflows
Laurus Labs	$518 million
Adani Enterprises	$324 million
Lenskart Solutions	$272 million
Groww	$260 million

The brokerage has also highlighted three names, Balkrishna Industries, Astral and SBI Cards, who are most likely to get excluded from the Standard Index during the August review, and it has a "high-conviction" belief on the same.

Nuvama expects the three potential exclusions to see outflows between $133 million to $162 million

Potential MSCI Exclusions	Potential Outflows
Balkrishna Industries	$162 million
SBI Cards and Payment	$141 million
Astral	$133 million

According to Nuvama Alternative's note, Biocon needs to trade around ₹447 apiece to enter the high-convictions inclusions list. The stock is currently trading around levels of ₹435.

The cut-off window will be open till July 31, 2026. The MSCI will announce its review on August 13 and the effective date for the same likely to be August 31.

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