MSCI November rejig: Coforge, LIC, Adani Green and Meesho stocks likely to be added

What happened

Nuvama expects Coforge, LIC, Adani Green Energy and Meesho to be potential additions in MSCI’s November index review, while ICICI Life and PI Industries could be removed. The changes remain proposed: an announcement is scheduled for November 12, and revised constituents are due to take effect on November 30.

Proposed

Global impact / market context

If the additions and removals are approved, funds that track MSCI indexes may need to buy incoming stocks and sell outgoing ones. Nuvama’s estimated trades are large compared with recent daily trading volumes, potentially affecting demand and the ease of trading.

Analyst inference

The report gives estimated inflows of $653 million for Coforge, $498 million for LIC, $300 million for Adani Green Energy and $254 million for Meesho. It estimates outflows of $145 million for ICICI Life and $118 million for PI Industries, but no changes are final yet.

Confirmed

What to watch

1. Check MSCI’s November 12 announcement to see whether the four proposed additions and two possible removals are confirmed, changed, or left out. Confirmed
2. If confirmed, revised index constituents are scheduled to take effect November 30; that timing could prompt funds tracking the index to adjust holdings. Confirmed
3. Compare actual trading with Nuvama’s estimates, especially the projected flows measured against average daily trading volume, to assess potential buying or selling pressure. Analyst inference

Evidence

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