read sharePoint folder name and generate hyperlinks on sharepoint excel cells that links to folders

GoallIn 
Sure. You could create a Power Automate Flow that reads all Folders from the document library (assuming you have only one) using the "Get Files (properties only)" Action with "Include Nested Items=Yes" and a Filter "ContentType eq 'Folder'"
Then you can store the results in a CSV file and save it on SharePoint (or insert the items into an excel file using the Power Automate Excel Actions)


But the idea with this "Index" Excel File seems wierd... I personally would use the SharePoint search for that usecase.
To do so, i would install the PnP Modern Search Webparts (https://microsoft-search.github.io/pnp-modern-search/), set the query to "ContentType:Folder" and configure the webpart to display the results as a List.
This would surely be more configuration and is a little bit complicated but you would have a SharePoint page with always the current results.