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BUZZ-India's Kotak Mahindra hits 7-1/2-month high after quarterly profit beat

(adds MSCI announcement, comment from research note)

** Shares of India’s third-biggest lender by market value rise as much as 11.8% to 1,583.70 rupees, highest since March 11

** Kotak posted a 27% jump in Sept-qtr profit on Monday, beating expectations, helped by higher net interest income, lower expenses and provisions

** Net interest margin, a key measure of profitability, rose to 4.52% vs 4.4% in previous quarter

** Kotak execs declined to comment on reports that the bank was looking to buy smaller rival IndusInd Bank, but said it was open to acquisition as a growth avenue

** Strong capital, provisions related to COVID-19, and excellent deposit franchise should help Kotak grab opportunities in post-pandemic world, says Phillipcapital India Research, raising TP to 1,600 rupees from 1,450 rupees

** Loan growth to pick on the back of asset quality and deposit franchise, says Jefferies, raising TP to 1,700 rupees from 1,570 rupees

** Investment research firm MSCI said on Monday it would implement changes in foreign ownership limits (FOL) in the MSCI global indexes containing Indian securities in November

** KTKM will see the highest inflow of about $1 bln in the latest round of rebalance and could see 1.8% weight in MSCI India - Macquarie analysts said in a note

** Stock posts sharpest intraday pct jump since March 25 and is the biggest boost to NSE Nifty 50 Index

** Around 26.5 mln shares change hands by 0833 GMT, vs 30-day avg of 4 mln shares

** Stock down ~16% YTD, vs a ~25% slide in the Nifty Bank Index (Reporting by Chris Thomas and Nallur Sethuraman in Bengaluru)

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