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.
