MSCI rejig could trigger over $250 mn passive selling

The latest rebalancing by global index provider MSCI could trigger selling of over $250 million by passive funds.

- SAI ARAVINDH

This is largely on the back of reduction in weightings of companies such as Eternal (formerly Zomato), Asian Paints, and Jindal Steel & Power and deletion of Sona BLW Precision and Thermax from the MSCI Global Standard Index.

Nuvama Institutional Equities expects net outflows between $250 million and $270 million.

The outflows could have been higher if not for inclusion of stocks like Swiggy, Vishal Mega Mart, Hitachi Energy, and Waaree Energies in the index.