MSCI rejig next week: Paytm eyeing inclusion, IndusInd Bank weight may double

The MSCI India Standard Index rebalancing, scheduled for announcement on February 11, has several stocks in focus, with One97 Communication-operated Paytm being a probable inclusion. Private lender IndusInd Bank’s weight may double.

The announcement will be made after market hours and will be effective from March 3.

Paytm is among the high-probability candidates for inclusion in the index, potentially attracting inflows of approximately $169 million, according to domestic brokerage firm JM Financial.


This inclusion could significantly boost investor interest in the digital payments platform and potentially drive its stock price upwards.

JM Financial also highlighted the anticipated doubling of IndusInd Bank's weight in the index as another aspect of the upcoming rebalancing. This adjustment is projected to result in a substantial buying flow of $145 million, equivalent to 12.2 million shares, representing three times the stock's average trading volumes.

The increased weight and subsequent buying pressure could further propel IndusInd Bank's stock, which has already seen nearly a 7% rise in the past month.

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Apart from Paytm, the dometsic brokerage firm listed three other stocks, Coforge, Fortis Healthcare, and Coromandel International, which may also be considered as high probability inclusions in the MSCI India Standard Index, potentially leading to increased visibility and potential inflows for these companies as well.

On the other hand, several stocks are being considered for inclusion with low probability, including Federal Bank, Blue Star, GE Vernova TD India, and Uno Minda, noted JM Financial.

While their inclusion is not highly anticipated, any positive surprise may trigger significant price movements due to potential fund flows.

Meanwhile, the shares of Paytm were trading 3.5% higher at Rs 808.80 while those of IndusInd Bank were 1.75% up at Rs 1,066.40 on the BSE around 12:30 pm today.

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