MSCI February Review: Here's What Changed For India Stocks

Index provider MSCI Inc. added five Indian stocks to its Emerging Markets Index in its February review Tuesday. The changes will come into effect from market close on Feb. 29.

As per the latest rejig, Punjab National Bank and Union Bank Of India were added to large-cap index, whereas Bharat Heavy Electricals Ltd. and NMDC were added to the mid-cap index. GMR Airports Infra was added to the mid-cap index from small-cap.

MSCI Domestic Indexes

Tata Motors and Macrotech Developers were added to large-cap in MSCI Domestic Indexes, whereas Punjab National Bank and Canara Bank were added to mid-cap.

BHEL, Persistent Systems, MRF, Suzlon Energy and Cummins India Kirloskar were upgraded from small-cap to mid-cap, meanwhile Embassy Office Park REIT added to Mid Cap

MSCI Emerging Markets Small Cap Index

Indian Renewable Energy Development Agency added to index, while GMR Airports Infra has been moved to mid-cap from small-cap. Prestige Estates Project and Rail Vikas Nigam Ltd. have been removed from the index.

MSCI India Domestic Index

The index provider added ten stocks to MSCI India Domestic Index, while there were no deletions from the gauge. The overall one-way index turnover stood at 2.94%, it said.

MSCI India Domestic Large Cap Index

Trent, Tata Consumer Products, Power Finance, REC, Tata Power  Macrotech Developers and Tata Motors were added to large-cap index. Where as there were no deletions from the index.

MSCI India Domestic Small Cap Index

IREDA, Vedant Fashions, Honasa Consumer, Cello World, Swan Energy, Paisalo Digital, Rattanindia Power, ITD Cementation India, Jaiprakash Associates, KPI Green Energy are addition to domestic small-cap index.

Persistent Systems, Suzlon Energy, Cummins India Kirloskar, MRF, BHEL, Oberoi Realty, Solar Industries India, Prestige Estates Project, Oracle Finanacial Services Software, L&T Technology Services top 10 deletions from the guage.

India could see close to $800 million to $1 billion in passive inflows of foreign funds, with public sector undertakings ruling the inclusions in the February Review, according to Nuvama Alternative & Quantitative Research.

India currently commands a 17.8% share in the MSCI Emerging Market Index. Due to the country's current momentum and outperformance as compared with other emerging markets, Nuvama projects the index representation to move upwards to 18.5%.