Coforge, LIC, Adani Green and Meesho Expected to Join MSCI Index in November Review

Coforge, Life Insurance Corporation of India (LIC), Adani Green Energy, and Meesho are among the stocks in focus ahead of the upcoming MSCI November index review. According to projections by Nuvama Alternative & Quantitative Research, these four companies are identified as potential additions to the index.

The official announcement regarding the index changes is scheduled for November 12, with the revised constituents set to take effect from November 30. These adjustments are closely monitored by market participants as passive funds benchmarked to MSCI indices adjust their portfolios accordingly, potentially influencing foreign portfolio investor flows.

The proposed changes are expected to drive significant passive fund flows into the incoming stocks. Estimates indicate that Coforge could attract the highest inflows at $653 million, followed by LIC at $498 million, Adani Green Energy at $300 million, and Meesho at $254 million.

These estimated inflows are substantial when measured against the average daily trading volumes (ADV) of the respective stocks. The anticipated inflow into Coforge is equivalent to 11 times its ADV. For LIC, the estimate stands at 16 times its ADV, while Adani Green Energy and Meesho face inflows equivalent to 12 times and six times their respective average daily trading volumes.

Conversely, Nuvama's projections indicate that ICICI Life and PI Industries are among the stocks expected to be removed from the MSCI index during the November review.

The removal of these stocks could result in corresponding outflows. ICICI Life is estimated to witness outflows of $145 million, which is equivalent to 19 times its average daily trading volume. Similarly, PI Industries is projected to see outflows of $118 million, representing seven times its ADV.

In previous index cycles, such as the August review, constituent changes have similarly impacted market activity with the entry and exit of several notable firms.

"Global index rebalancing events like the MSCI review play a critical role in determining capital flows for listed companies and growth-stage enterprises stepping into public markets. The projected inflows for companies like Meesho and Coforge highlight how inclusion in major global indices can create substantial demand relative to average daily trading volumes. For founders and investors, tracking these passive fund movements is essential, as they directly impact stock liquidity and institutional participation in the Indian market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes