(Reuters) -MSCI will add four Indian stocks, including retailer Vishal Mega Mart and online delivery platform Swiggy, to its flagship MSCI Global Standard index, setting them up for potential total inflows of $1 billion.
Hitachi Energy India and Waaree Energies will be the other two additions to the index, while Sona BLW and Thermax will be dropped, the index provider said in a statement dated August 7.
The changes will take place as of the close of August 26, MSCI said.
Swiggy is expected to get inflows worth up to $289 million, while Vishal Mega Mart can get $258 million in passive fund flows as a result of the addition, IIFL Alternate Desk said. They added that Hitachi Energy is likely to draw $230 million of inflows, and Waaree Energies $233 million.
All the six shares were trading lower on the day in a weak market. Meanwhile, information technology company Coforge was down 4%, among top 3 midcap losers, as it failed to make it to the MSCI Global Standard index.
MSCI's indexes are used by investors globally, with about $16.9 trillion of assets under management benchmarked to their equity indexes.
The index provider will reduce Swiggy rival Eternal's weight in the flagship index, leading to outflows of up to $607 million, as per IIFL Alternate Desk.
Eternal's weight was expected to be lowered amid its proposal to convert to Indian owned and controlled company (IOCC), capping foreign ownership to 49.5%.
Apart from Eternal, three other Indian stocks - Asian Paints, Jindal Steel and Havells India will see weight cuts, while CG Power and Industrial Solutions' weight will be increased.
The index provider also announced the addition of 15 Indian stocks and removal of six from its Global Smallcap index.
(Reporting by Vivek Kumar M; Editing by Ronojoy Mazumdar)
By Vivek Kumar M
