Global index provider FTSE has lowered the weightage of Indian conglomerate ITC in its global equity index series from 75 per cent to 24 per cent and raised it in the case of two other Indian entities.
According to the FTSE Global Equity Index Series’ December Investability Weight Changes Summary, weightage has been changed for three Indian companies namely ITC, Kotak Mahindra Bank and IndusInd Bank.
While ITC’s weightage has been lowered, it has been increased for the other two companies.
Kotak Mahindra Bank’s weightage has been increased from 33 per cent to 35 per cent and IndusInd Bank’s weightage to 49 per cent from 24 per cent.
Following the announcement, shares of ITC tanked as much as 4.36 per cent to an early low of Rs 292.50 on the BSE.
On the other hand, Kotak Mahindra Bank scrip surged 0.78 per cent to a high of Rs 665 and IndusInd Bank’s shares jumped nearly 3 per cent to an early high of Rs 417.75 on the BSE.
Other companies, whose weightages have been changed include Eurobank Ergasias of Greece (up from 75 per cent to 100 per cent), CJ Korea Express of Korea (down from 50 per cent to 40 per cent); Africa Israel Investments of Israel (up from 30 per cent to 50 per cent); Malaysia Airports of Malaysia (up from 30 per cent to 50 per cent) and Heckmann of USA (down from 100 per cent to 75 per cent).