Tata Motors DVR, Intellect Design and SKF India are among the stocks that may be added to the MSCI Smallcap index after the index provider does its semi-annual review next month. The review could help these stocks garner $9.2 million, $7.8 million and $7.7 million in flows, respectively, according to IIFL Alrernative Research.
Other notable high impact potential additions include the likes of Asahi India Glass, Elgi Equipments, Solar Industries, Shriram City Union, Grindwell Norton, GSFC, Route Mobile and Sheela Foam. The maximum volume impact could be on Shriram City Union (11.6x) and Solar Industries (15.8x). The index review announcement will be made on May 11 and adjustments will be done on May 27.
The gap between the difference in returns for Nifty 50 and Nifty Small Cap 100 indices has narrowed in the last year, but on a three-year return basis small caps have still underperformed, according to analysts.
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