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India’s stocks are poised to see about $2 billion of passive inflows after a review of MSCI Inc.’s gauges, according to Nuvama Wealth Management Ltd.

More than 10 stocks — including Indus Towers Ltd., PB Fintech Ltd. and Phoenix Mills Ltd. — will likely be included to the MSCI’s index, Abhilash Pagaria, head of alternative and quantitative research, wrote in a note Tuesday. Three firms, including Paytm-operator One 97 Communications Ltd., may be excluded from the measure, he added.

An announcement of the quarterly review is due in early hours of Asia Wednesday.

Inflows from exchange-traded funds that track the MSCI gauges will help boost local stocks amid selling by foreigners since April. Global funds have sold more than $3.5 billion of Indian shares this quarter amid rich valuations, a rebound in Chinese shares and jitters over outcome of the ongoing national elections. That has led to Indian stocks sharply underperforming Asian peers in May.

The latest batch of inclusion may raise the number of Indian firms in the MSCI Emerging Markets Index closer to 150 from 136, helping push India’s weight toward the 20% threshold, Pagaria said.

The rally in Indian equities has doubled their weighting in the MSCI measure to 18.08% in four years, data compiled by Bloomberg show. This comes as China’s representation reduced to 24.32% from 35.49% in the same period.

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