MSCI Global Standard Index Welcomes New Indian Stocks

MSCI Global Standard Index Welcomes New Indian Stocks

VoM News Desk | November 15, 2023 | 12:02 PM IST | Breaking News | Follow on Google News

MSCI Global Standard Index Welcomes New Indian Stocks

MSCI Global Standard Index Welcomes New Indian Stocks

Nine Indian stocks, including IndusInd Bank, One 97 Communications (Paytm), Tata Motors ‘A’ (Tata Motors DVR), and Suzlon Energy, have been included in the prestigious MSCI Global Standard Index. This inclusion reflects a growing recognition of these companies in the global market.

Other Stocks Included in the MSCI India Index

In addition to the aforementioned companies, the MSCI India Index will now also feature APL Apollo Tubes, Macrotech Developers, Persistent Systems, Polycab India, and Tata Communications. These inclusions showcase the diverse range of sectors represented by Indian companies in the global indices.

No Deletions from the India Index

In its latest revision, MSCI did not remove any stocks from the India index. The changes will be effective as of the close of November 30, 2023. This stability in the index composition is a positive sign for the Indian market.

Impact of MSCI Index Inclusion

The MSCI indices are closely monitored by passive funds, and any stock inclusions or weightage increases tend to attract significant inflows from these funds. According to a report by Nuvama Alternative & Quantitative Research, the inclusion of IndusInd Bank in the index is expected to bring in around $290 million in inflows. Other companies like Suzlon Energy, Persistent Systems, One97 Communications, and APL Apollo Tubes are also projected to receive substantial inflows.

India’s Growing Representation in Emerging Market Index

Post-rebalance, the number of Indian stocks in the index will rise to 131, and India’s weight in the Emerging Market index is set to increase to approximately 16.3%, up from the current 15.9%. This growth signifies India’s rising prominence in the global market, with its representation almost doubling in the past three years.

Changes in MSCI India Smallcap Index

The MSCI India Smallcap Index will also see changes, with 42 stocks being added and 19 excluded. New entrants include Ashoka Buildcon, Arvind Fashions, Concord Biotech, and others, while companies like ACC, APL Apollo Tubes, and BHEL will be excluded. These adjustments reflect the dynamic nature of the Indian stock market and its diverse range of small-cap companies.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.