The Impact of MSCI Inclusion on IREDA, Cello, and Mamaearth

Stock weightage in prominent global indices like the MSCI and FTSE plays a significant role in the movement of investment funds. Companies that find their way into these indices, or have their weightage increased, typically see an influx of passive investment funds that follow these indices. Conversely, firms excluded from these indexes often experience capital outflows as passive funds adjust their holdings. Announcements regarding changes to index constituents are therefore closely monitored by investors for their potential impact on stock prices.

Prospective Inclusion in MSCI Index

There are several stocks on the watchlist for potential inclusion in the MSCI index. Among them, IREDA, Cello, and Mamaearth stand out as frontrunners. The addition to such an index can result in significant fund inflows as various investment vehicles aligned with the index rebalance their portfolios to include the newly added stocks.

Stocks Needing to Rally

On the other side of the spectrum, companies like Nykaa and Mankind need to see an upsurge in their market performance to bolster their chances of being added or having their share in the index increased. These organizations need to rally more in the stock market to meet the criteria for inclusion or to increase their index weightage.

investment, indices, stocks