MSCI raises Indian stocks' weightage to record high in key index (updated)

Suzlon Energy

13/02/2024 04:00

(Adds names of shares added to MSCI indexes in paragraphs 8-12,
adds charts, reworks lead)
    By Bharath Rajeswaran
       BENGALURU, Feb 13 (Reuters) - Index provider MSCI raised
India's weightage in its Global Standard index to an all-time
high of 18.2% on Tuesday, which could lead to inflows of about
$1.2 billion, analysts said. 
    The rise, which comes after MSCI's February review, will
come into effect after market close on Feb. 29.
    India's weightage in the index has nearly doubled since
November 2020. It is currently at 17.9%.
    The gain can be attributed to a sustained rally in domestic
equities and relative underperformance of other emerging
markets, especially China, Nuvama Alternative & Quantitative
Research said in a note.
    India has the second-highest weightage in the MSCI Global
Standard index, after China. 
    Consistent flows from domestic institutional investors and
steady foreign portfolio investor participation could lead to
India surpassing a 20% weight in the MSCI Global Standard index
by early 2024, Nuvama added.
    MSCI added five Indian stocks to its Global Standard index
and did not move any out. In contrast, the index provider
removed 66 Chinese stocks while adding five.
    India's state-owned lenders Punjab National Bank  PNBK.NS 
and Union Bank of India  UNBK.NS  were added to the large-cap
index, while Bharat Heavy Electricals  BHEL.NS  and NMDC
 NMDC.NS  were included in the mid-cap index. GMR Airports
Infrastructure  GMRI.NS  was moved to the mid-cap index from the
small-cap one.
    According to Nuvama, India could witness up to $1.2 billion
of passive foreign flows after the February review.
    
  
    Tata Motors  TAMO.NS  and Macrotech Developers  MACE.NS 
have been added to MSCI Domestic Indexes under the large-cap
category while Punjab National Bank, Canara Bank  CNBK.NS  and
Embassy Office Park REIT  EMBA.NS  have been added to mid-caps.
    Bharat Heavy Electricals  BHEL.NS , Persistent Systems
 PERS.NS , MRF  MRF.NS , Suzlon Energy  SUZL.NS  and Cummins
India  CUMM.NS  were moved to the mid-cap index from the
small-cap one.  
    About 27 small-cap stocks were added to MSCI Domestic Index,
while six were either moved to other categories or removed.   
    

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Additions to MSCI Global Standard Index    https://reut.rs/3OLCZ31
Potential flows after MSCI Global Standard index rejig    https://reut.rs/3HY8Z0c
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Bharath Rajeswaran in Bengaluru; Editing by
Sherry Jacob-Phillips and Mrigank Dhaniwala)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))