HDFC Bank merged entity may see $150-200 mn outflows post MSCI largecap index inclusion

MSCI is planning to add HDFC Bank to the largecap segment of MSCI Global Standard Indexes with an adjustment factor of 0.5, instead of the expected 1, leading to a potential outflow of up to $200m instead of an inflow. HDFC Bank's addition would have resulted in an additional inflow of around $3bn. HDFC Bank and HDFC shares lost 5.56% and 5%, respectively, after the announcement.