“If they continue to trade above the current price levels, they would qualify the inclusion size cut-off by a comfortable margin,” Emkay said.
The entry of Cummins India and IDFC First Bank could result in inflows of $108 million and $101 million, respectively, Emkay said.
The brokerage sees potential for two more stocks to enter the index but with a low probability. These two stocks are Astral and Power Finance Corporation.
If the prices of Astral and Power Finance Corp increase by another 6-8% in the next one-and-a-half months, then both have high potential to enter the India index, Emkay said.“Since their free-float market cap lies on the borderline of our expected size requirement, we have qualified them as a low probability candidate,” it said. If Astral and Power Finance Corp shares get included, it is likely to result in inflows of $96 million and $90 million, respectively.In trade on Wednesday, shares of IDFC First Bank were up nearly 2% on the National Stock Exchange and hit an over 6-year high of Rs 76.80. Meanwhile, Cummins India shares gained 0.6% and touched a record high of Rs 1,867.
Astral and Power Finance Corp shares fell over 1% each to Rs 1,967.45 and Rs 200.35, respectively.
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