MSCI May Rejig: India Weight At New Record With 13 Stock Additions

Nuvama expects $2 billion of passive inflows into India once the changes in its indices come into effect on May 31.

<div class="paragraphs"><p>(Source: DC Studio on Freepik)</p></div>
(Source: DC Studio on Freepik)

MSCI Inc. has added 13 Indian stocks to its Global Standard Index under quarterly review for May. The changes will come into effect from May 31, before markets close. After the latest rejig, India's weight in MSCI's global standard indexes will rise to a new record of 18.8% from the current 18.3%. China, which is the top nation in emerging markets pack for Asia, will see its weight slip to 25.4% from 25.7% after May ends. The EM Asia group holds 78.5% weight in the emerging markets tracked by MSCI, which will inch up to 78.6% after the rebalancing.

JSW Energy Ltd., Canara Bank and Indus Towers Ltd. have been added under large-cap segment of the Emerging Markets index in the rejig, according to a statement by the global index provider. Mankind Pharma Ltd., Bosch Ltd., NHPC Ltd., Solar Industries India Ltd., Torrent Power Ltd., Thermax Ltd., Jindal Stainless Ltd. and Sundaram Finance Ltd. have been added to the mid-cap index. Meanwhile, Phoenix Mills Ltd. and PB Fintech Ltd. have been upgraded from small cap to mid-cap index.

According to Nuvama Alternative and Quantitative Research, India can see $2 billion of passive inflows once the changes in its indices come into effect.

MSCI Domestic Indexes

Indus Towers, Mankind Pharma, NHPC, Solar Industries India, Torrent Power, NMDC Ltd. and Sundaram Finance have been added to MSCI domestic indexes.

JPMorgan Says India Index Inclusion On Track, Clients Ready

MSCI has removed Berger Paints India Ltd. from the Emerging Markets index, and downgraded Indraprastha Gas Ltd. and Paytm parent One 97 Communications Ltd. to small cap from mid cap. These three stocks, along with Jubilant FoodWorks Ltd. have been removed from the MSCI domestic indexes as well.

Housing Urban Development Corp., Indraprastha Gas, Waaree Renewable Technologies Ltd. and One 97 Communications have been added to the MSCI Emerging Markets Small Cap Index.

Tata Technologies Ltd., Housing Urban Development Corp., Jubilant FoodWorks, Bandhan Bank Ltd. and Waaree Renewable Technologies have been added to the domestic small cap indexes.

Meanwhile, Oil India Ltd. has been deleted from the domestic small cap indexes.

MSCI India Domestic Index

Sundaram Finance, Indus Towers, NHPC, Torrent Power, NMDC, Mankind Pharma and Solar Industries India have been added to the MSCI India Domestic Index under the current reassessment.

MSCI increased the weight of these stocks along with ITC Ltd., Zomato Ltd. and Vedanta Ltd. in its India domestic index.

Punjab National Bank was the sole addition in the MSCI India Domestic Large Cap Index, with ITC, Zomato, Vedanta, Macrotech Developers Ltd. and Tata Steel Ltd. being the top weight increases in the gauge along with the state-run lender.

India Bonds Continue To See FII Selling Despite Index Inclusion Next Month