In its August index review, global index aggregator MSCI announced plans to raise HDFC Bank’s weight in the Global Standard index in two stages. MSCI revealed that it would increase HDFC Bank’s Foreign Inclusion Factor (FIF) from 0.37 to 0.56 as of the market close on August 30. The second phase of this increase is scheduled for the November index review, provided the foreign room remains at or above 20 percent at that time. This adjustment, which MSCI made with a lower adjustment factor than usual, is expected to result in an inflow of $1.8 billion, equivalent to 93 million shares, with an estimated impact lasting about 4.5 days, according to Nuvama.
HDFC Bank is set to see an influx of $1.8 billion as the MSCI plans to increase its weight in the Global Standard index in two phases
