Multibagger BHEL, Mamaearth and IREDA likely to make the cut in these MSCI indices
MSCI Global Standard Index in the February review. These are Punjab National Bank (PNB), Bharat Heavy Electricals (BHEL), Union Bank of India and NMDC according to estimates by Nuvama.
Want to take exposure to a sector which grows much faster than GDP
The expected inflows are to the tune of $591 million with PNB accounting for the lion’s share at $154 million followed by BHEL ($152 million), NMDC ($145 million) and Union Bank ($140 million), the Nuvama report said.
The official announcement of the rejig is expected on February 13 while the adjustments will come into effect on February 29.
Meanwhile, NHPC and Jindal Stainless remain at the borderline, the report said.
Based on NMDC’s shareholding data disclosed on January 18, its inclusion could happen at a lower price, Nuvama report said.
Shares of PNB have rallied nearly 76% over the past 12 months, significantly outperforming Nifty Bank and broader Nifty index, which have given respective gains of over 5% and 17%. BHEL has been a multibagger with 159% returns while NMDC and Union Bank have returned 64% and 70%, respectively.
The domestic brokerage has also identified 30 stocks that are likely to enter the MSCI Index. The high convictions stocks include Indian Renewable Energy Development Agency (IREDA), Cello World, Honasa, Jaiprakash Associates, RR Kabel, KPI Green Energy, Swan Energy, Protean Egov, DB Realty, IIFL Securities, Netweb Technologies India, Dhanuka Agritech, Balmer Lawrie, Kesoram Industries and SpiceJet.
Their inclusion is expected to trigger combined inflows of $100 million with the highest by IREDA at $12 million followed by Celloworld at $7 million. Honasa Consumer, which runs Mamaearth brand, will likely see inflows of $5 million while $2
