Potential MSCI Index Changes in February 2025: Stocks to Watch for Significant Inflows

The upcoming MSCI index review for February 2025 is poised to bring notable changes, with several stocks likely to transition from the MSCI Small Cap Index to the Standard Index. Brokerage firm Motilal Oswal Financial Services (MOFSL) estimates that five stocks—Coforge, One 97 Communications (Paytm), Coromandel International, UNO Minda, and Fortis Healthcare—have a high chance of inclusion in the MSCI Standard Index.
In addition, GE T&D India and Federal Bank hold medium to low chances of being added to the index.
Anticipated Inflows Coforge is expected to attract the largest passive fund inflow, estimated at $423 million, due to its probable inclusion in the MSCI Standard Index. Paytm and Coromandel International are likely to see inflows of $197 million and $159 million, respectively. UNO Minda and Fortis Healthcare could bring in $148 million and $249 million, while GE T&D India and Federal Bank are forecast to attract $177 million and $257 million in passive funds.
The MSCI index review cut-off period will span from January 20, 2025, to January 31, 2025, with the final selections to be announced on February 12, 2025. The index changes will come into effect on March 3, 2025.
Hyundai Motor India’s Uncertain Inclusion The inclusion of Hyundai Motor India remains uncertain due to the IPO lock-in period ending on January 16, 2025. The final decision will depend on the updated shareholding pattern before the cut-off date.
IndusInd Bank’s Expected Weight Increase IndusInd Bank is set to see a weight increase in the MSCI Standard Index. Currently at 0.22%, its weight could potentially double to 0.44% if foreign institutional investor (FII) holdings decrease by 0.03%. This change could lead to an additional inflow of approximately $200 million into IndusInd Bank shares.
Disclaimer: The views and recommendations above reflect those of individual analysts or broking companies and do not necessarily represent the opinions of this publication.