AU Small Finance Bank to See MSCI Index Weight Boost: $172 Million Inflows Expected

Shares of AU Small Finance Bank Ltd rose on Wednesday, February 11, after it was announced that the stock will see a weight increase in the MSCI Global Standard Index due to a float adjustment. On Wednesday, AU Small Finance Bank shares were trading 0.9% higher at ₹1,009.7 each around 9:25 am, having surged 76.8% over the past year.

AU Small Finance Bank to Attract Inflows

According to Nuvama Alternative and Quantitative Research, the bank is expected to attract inflows of approximately $172 million, equivalent to around 15.6 million shares, following the index adjustment. The changes are scheduled to be implemented during the final minutes of trading on February 27.

Companies to be Added on MSCI Index

In other developments, L&T Finance and Aditya Birla Capital have been added to the global index, while IRCTC is the sole exclusion, expected to see outflows of roughly $142 million, according to Nuvama’s research.

Following this index reshuffle, India’s overall weight in the MSCI Standard Index remains steady at 14.1%, and the number of Indian companies in the index will increase from 164 to 165.

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