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India’s weight in MSCI index grows with 13 additions

Fresh additions, effective 31 May, likely to see about $2.5 billion of passive inflows

India’s weight in MSCI index grows with 13 additions
[Source photo: Chetan Jha/Press Insider]

Index service provider MSCI Inc has added 13 Indian stocks to its Global Standard Index and removed three, taking the total count of Indian stocks on the MSCI indices to 146 from 136 earlier.

The changes in the constituents will be effective 31 May, MSCI said.

India will see the addition of most stocks to the indices, followed by China with 10 additions and 56 removals.

The newly included company stocks on the index are Bosch, Canara Bank, Indus Towers, Jindal Stainless, JSW Energy, Mankind Pharma, NHPC, PB Fintech, Phoenix Mills, Solar Industries India, Sundaram Finance, Thermax, and Torrent Power, while those of Berger Paints India, Indraprastha Gas and Paytm parent One 97 Communications exited.

India’s share in the MSCI EM Index is set to increase from the current 18.3% to about 19%, and the additions may see “a net inflow of about $2.5 billion in FII (foreign institutional investment) passive flows,” Bloomberg reported, citing a note by Abhilash Pagaria, head of Nuvama Alternative and Quantitative Research.

Among small cap stocks, MSCI has included 29 Indian stocks, including Aditya Birla Sun Life and Waaree Renewable Tech to the MSCI Global Small Cap Indexes, and removed 15, including Alok industries and Tatva Chintan Pharma.

Foreign investors have been on a stock-selling spree in the Indian capital market since April amid the general election, with some estimates pegging the outflows this quarter at $3.5 billion.

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