India's weightage climbs to its highest ever on MSCI Global Standard index

Lodha Developers

15/11/2023 05:52

By Kashish Tandon and Bharath Rajeswaran
       BENGALURU, Nov 15 (Reuters) - India's weightage in
MSCI's Global Standard (Emerging Markets) index will move close
to 16.3%, an all-time high, from the current 15.9%, after the
index provider's November review. 
    This marks "a significant increase over the past three
years, almost doubling its weight," Nuvama Alternative &
Quantitative Research said in a note.
    Foreign portfolio investors use the MSCI indexes as a gauge
to allocate their passive flows.
    MSCI added nine Indian stocks to the index in its November
review on Tuesday, with changes to come into effect from market
close on Nov. 30. Post the rebalance, India's stock count will
rise to 131.   
    Indian automaker Tata Motors  TAMO.NS , cables maker Polycab
India  POLC.NS , real estate firm Macrotech Developers
 MACE.NS , IndusInd Bank  INBK.NS  and Paytm-parent One 97
Communications  PAYT.NS  were among the nine stocks to be added.
No Indian stocks were deleted to accommodate the new additions. 
   According to Nuvama's calculations, India is likely to
receive passive inflows of close to $1.5 billion post the rejig.
    IndusInd Bank  INBK.NS , Suzlon Energy  SUZL.NS , Persistent
Systems  PERS.NS , and APL Apollo Tubes  APLA.NS  will each
receive maximum inflows of $355 million, $289 million, $255
million and $228 million after the inclusion, the domestic
brokerage said. 
    MSCI added One 97 Communications  PAYT.NS  and Polycab India
 POLC.NS  to its India Domestic Index, an index focussed on the
large- and mid-cap segments of the domestic market. 
    Power Finance Corp  PWFC.NS , REC  RECM.NS , IDFC First Bank
 IDFB.NS , Supreme Industries  SUPI.NS  and Max Healthcare
Institute  MAXE.NS  have been included in the domestic index.
    MSCI's small-cap index, which accounts for approximately 14%
of the market capitalisation of Indian stocks in MSCI indexes,
also witnessed an inclusion of 41 stocks while 13 stocks were
excluded.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Additions to MSCI Global Standard index    https://tmsnrt.rs/3srpCgH
Post inclusion into MSCI Global Standard index    https://tmsnrt.rs/3SH3xVT
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Kashish Tandon and Bharath Rajeswaran in
Bengaluru; Editing by Janane Venkatraman)
 ((Kashish.Tandon@thomsonreuters.com;))