MSCI August review announced: HDFC Bank weightage increase expected to bring in the highest inflows

Global index provider MSCI has released the changes in the MSCI Global Standard Index and the rejig shall come into effect from the closing on August 30. In its announcement, MSCI noted that MSCI will maintain HDFC BANK in MSCI Indexes with an increase in the Foreign Inclusion Factor (FIF) from 0.37 to 0.56 as of the close of August 30, 2024 (effective September 2, 2024) coinciding with the August 2024 Index Review.

HDFC BANK is subject to a Foreign Ownership Limit (FOL) of 74% and an adjustment factor of 0.5. Based on the latest available shareholding disclosure, the foreign room is above 25%, it added.

As mentioned in the MSCI Global Investable Market Indexes (GIMI) methodology, securities with foreign room greater than 25 per cent are maintained in the MSCI GIMI Indexes with the adjustment factor of 1. However, in view of the significant weight of HDFC BANK in the MSCI India Index, MSCI will apply an adjustment factor of 0.75 along with the August 2024 Index Review.

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Stocks to be included after the recent rejig

According to Zee Business research inputs, the following companies will see a change and experience addition and deletion in the MSCI index

Stocks to be included

Company Expected Inflows (in cr)

Dixon Tech 2360.4

Vodafone Idea 2335.2

Oil India 1999.2

Zydus Life 1932

RVNL 1839.6

Prestige Estates 1520.4

Oracle Financial Services 1428

Company Expected Outflow (in cr) Bandhan Bank 1050

Weightage to be increased