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Mumbai: India is expected to receive net inflows of around $2.5 billion from overseas passive funds when the global index provider MSCI rebalances its index on November 25. In an announcement on Thursday, MSCI said it has added five stocks - BSE, Voltas, Alkem Laboratories, Kalyan Jewellers, and Oberoi Realty - to its Global Standard Index; while reducing the weights of Adani Green, RIL, ICICI Bank, Infosys, GMR Airports, and Adani Power.Passive funds, such as exchange traded funds (ETFs), structure their portfolios on the basis of these indices. When MSCI adds or removes stocks from its indices, these funds must also follow suit.115067038According to Nuvama Alternative & Quantitative Research, Voltas is projected to attract the highest inflow at $312 million, followed by BSE with $259 million. Kalyan Jewellers, Oberoi Realty, and Alkem Labs are estimated to receive $241 million, $215 million, and $204 million, respectively."With this rejig, India is set to see a net inflow of approximately $2.5 billion in FII passive flows," said Abhilash Pagaria. head, Nuvama Alternative & Quantitative Research. "With five inclusions and no exclusions, India's stock count in the MSCI Standard Index will rise to 156."Adani Energy, initially anticipated for inclusion, was excluded due to concerns over its free float, according to MSCI.MSCI increased HDFC Bank's weight in the index, which is likely to bring in $1.87 billion from passive funds. This adjustment, previously announced in August, is being implemented in two stages.Other stocks, including Tata Power, JSW Energy, Samvardhana Motherson, Jindal Steel & Power, PB Fintech, and APL Apollo Tubes, will also see an increase in their weights on the MSCI Global Standard Index.

TVS Mobility, the family office of TS Rajam and his successors, has tapped banks and credit funds to raise Rs 2,000 crore for capital expenditure by the businesses in its fold and for debt repayments, according to people aware of the matter. The fundraise is said to be anchored by Standard Chartered Bank and will include credit investors that could join the pool of lenders. TS Rajam is one of eight descendants of group founder TV Sundaram Iyengar.His successors include but are not limited to R Dinesh, executive chairperson of TVS Supply Chain Solutions, R Haresh, who officiates as director of TVS Mobility group, and Shobhana Ramachandran, managing director of TVS Srichakra. The family office had obtained short-term loans from non-bank finance companies, mutual funds and corporate treasuries in September last year to clear dues owed to Kotak Special Situations Fund, from which it had borrowed around `1,000 crore in 2021, according to the sources. The fresh fundraise will cover repayments on the short-term loans and capital expenditure of group units, though ET couldn’t independently verify which companies the money would be allocated to. “The TVS Mobility group continues to explore financing options to support the growth of its group companies. At this stage, we are unable to provide details regarding the fund size,” said an official spokesperson for TVS Mobility. “Further, we want to clarify that this initiative is unrelated to TVS Supply Chain Solutions (TVS SCS).” Standard Chartered Bank declined to comment. TVS Mobility owns a 24.35% stake in the listed TVS Supply Chain Solutions. It has over a dozen subsidiaries, associate companies and joint ventures, according to the latest Registrar of Companies data. TVS Mobility has interests in businesses such as supply chains, tyre manufacturing, vehicle dealerships, it also indirectly owns a stake in Ki Mobility, an online aftermarket for auto parts and spares. As per the corporate filings, TVS Mobility had assets of Rs 5,604 crore and income of Rs 9,293 crore in FY23. FAMILY SETTLEMENT Members of TV Sundaram Iyengar’s family reached a settlement in 2021 to earmark businesses to the successor lines and unwind cross holdings. In accordance with that settlement, four sons of TV Sundaram Iyengar and their respective successors were to continue running the companies under their control. TS Rajam and his successors control TVS Mobility while TS Santhanam’s family continues to run Sundaram Finance. TS Krishna’s family is at the helm at Sundram Fasteners while TS Srinivasan’s family controls TVS Motors.

Mumbai: Overseas investors sold Indian equities worth ₹33,995 crore across 14 sectors between October 16 and 31, according to data from NSDL. Oil & gas witnessed the highest foreign outflows as investors sold ₹9,073 crore in the second half after selling over ₹12,000 crore in the first-half of the month.From January to September, overseas investors pulled ₹10,724 crore out of the shares in the sector."Apart from the volatility in crude oil prices, a major part of selling in the oil & gas sector was likely due to the energy stocks being widely held by foreign investors who sold India last month," said Sriram Velayudhan, senior vice president, IIFL Securities.Foreign investors renewed buying interest in the healthcare and power sectors, purchasing ₹2,321 crore and ₹1,168 crore in the second half of the month, after selling over ₹2,000 crore in both sectors in the first half of the month.Foreign investors pulled ₹1.04 lakh crore out of Indian equities in October - their highest-ever selling in a month - as a rebound in Chinese equities and a slowdown in domestic corporate earnings have lowered their appetite for stocks here115067023The unrelenting foreign selling extended to fast-moving consumer goods (FMCG) and consumer services sectors as these investors dumped shares worth over ₹4,000 crore each in the second half of October. In the first half of October global investors sold sharwes worth ₹6,818 crore and Rs 4,633 crore in the sectors, respectively.In the second half of October, foreign investors sold shares worth over ₹2,000 crore in construction, financial services, automobiles & auto components, consumer durables and construction materials.

LONDON, - The Bank of England cut interest rates on Thursday for only the second time since 2020 and said future reductions were likely to be gradual, seeing higher inflation and growth after the new government's first budget. The Monetary Policy Committee voted 8-1 to cut interest rates to 4.75% from 5%, a stronger majority than expectations in a Reuters poll for a 7-2 vote in favour of a cut. Catherine Mann dissented, preferring to keep rates on hold. "We need to make sure inflation stays close to target, so we can't cut interest rates too quickly or by too much," BoE Governor Andrew Bailey said in a statement. "But if the economy evolves as we expect it's likely that interest rates will continue to fall gradually from here," he added, broadly echoing his language after September's meeting. The BoE predicted that finance minister Rachel Reeves' budget last week - which entails big increases in tax, spending and borrowing - would boost the size of Britain's economy by around 0.75% next year but barely improve annual growth rates in two or three years' time. Her plan was likely to add just under half of a percentage point to the rate of inflation at its peak in just over two years' time, the BoE said, causing inflation to take a year longer to return sustainably to its 2% target. The BoE's cautious language on the future interest rate cuts was similar to previous months, in keeping with investors' view that it is likely to cut interest rates more slowly than the European Central Bank. The BoE did not refer to Donald Trump's U.S. election victory, which has prompted a big reduction in bets that the Federal Reserve will cut interest rates aggressively. Financial markets on Wednesday were pricing between two and three interest rate cuts from the BoE in 2025 - down from around four before the budget. The BoE said inflation was likely to rise to around 2.5% by the end of this year from 1.7% in September and hit 2.7% by the end of next year, before falling gradually below its 2% target by the end of the three-year forecast. Government decisions to raise the cap on bus fares, hike value-added tax on private school fees and increase employers' social security contributions were likely to boost inflation. With the latter measure combining with a 6.7% hike in the national minimum wage, the BoE said employers faced rising costs - although it could not be certain of the overall effect on inflation as employers might respond by sacking staff or accepting lower profits. While the BoE downgraded its forecast for average economic growth this year to 1% from 1.25%, reflecting recent revisions to past growth, it raised its forecast for 2025 to 1.5% from 1%. "This reflects the stronger, and relatively front-loaded, paths for government consumption and investment more than offsetting the impact on growth of higher taxes," the BoE said. While the BoE's forecasts for growth and inflation include the impact of higher spending and taxes, they do not include the effect of a big rise in market borrowing costs since the budget as it set those assumptions beforehand and did not update them. If the now higher market interest rates were factored in, the outlook for inflation and growth would likely be a bit lower. The BoE repeated its message that monetary policy would need to stay "restrictive for sufficiently long" to return inflation sustainably to the 2% target.