Tube Investments, Varun Beverages, TVS Motor may enter MSCI index: Nuvama Research

Tube Investments, Varun Beverages, TVS Motor Co, Bajaj Holdings & Investment, and ABB India are likely to be added to the MSCI global index when the index aggregator runs a review in November, according to Nuvama Alternative & Quantitative Research.

The inclusion of these stocks could bring inflows to the tune of $801 million, the research firm said.

Earlier this month, IIFL Securities, too, predicted Tube Investments, Varun Beverages, Bajaj Holdings, ABB India to get included in the index. Along with these stocks, it also saw potential for Indian Hotels to enter the global index.

Nuvama Research expects Indraprastha Gas to exit the index, resulting in an outflow of $93 million. MSCI will announce the changes on November 10, that will come into effect from December 1.

The review of inclusion or exclusion hinges upon the free float global market capitalisation of stocks as of the cut-off date. As per Nuvama research, the market cut-off could be any day this week for the MSCI November review.

MSCI usually selects any one day out of the last 10 trading days of the cut-off month. As on that day, stocks with more than 80% free float global market capitalisation get shortlisted.

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