India saw the second highest number of additions - eight companies- in the latest MSCI Global Standard Index revamp after China that saw 29 inclusions. In a statement on Thursday, the global index provider said that it is adding Ashok Leyland, Astral, Cummins India, HDFC Asset Management Company, IDFC First Bank, Power Finance Corporation, REC and Supreme Industries while Adani-owned ACC has been excluded from its MSCI Global Standard India Index.
According to analysts, this will add nearly $1 billion into Indian stocks.
MSCI India SmallCap index saw 41 additions and exit to NIIT and BEML Land.
The 41 additions are ACC, Aether Industries, Ami Organics, Anand Rathi Wealth, Avalon Tech, Chennai Petroleum, Dreamfolks Services, Five-Star Business, GE T&D, Genus Power, Glenmark Life Sciences, Gravita India, HBL Power Systems, Hindware Home, ICRA, Jupiter Wagons, Kalyan Jewellers, Kirloskar Brothers, Kirloskar Pneumatic, Marksans Pharma, MIDANI, MRS Bectors Food, Nava, Neuland Lab, Newegen Software, Nexus Select Trust, Patel Engineering, PTC Industries, Schneider Electric Infra, Shivalik Bimetal Controls, Star Health & Allied,Sula Vineyards, Tamilnad Mercantile Bank, TD Power Systems, Tega Industries, Titagarh Rail, Ujjivan Financials, Vesuvius India. Voltamp Transformers and Zen Technologies.
Similarly, HDFC Asset Management Company has been added in MSCI India Index and ACC has been excluded.
Status Quo on Adani stocks
In light of continued uncertainty with the free float of Adani Group and associated securities within the MSCI ACWI IMI Indexes, MSCI will not implement any changes in the Foreign Inclusion Factor (FIF) or Number of Shares (NOS) for the related securities as part of the August 2023 Index Review and until otherwise announced, it said
“Also, until otherwise announced, MSCI will review the treatment of non-neutral corporate events for the affected securities on a case-by-case basis and potentially defer their implementation. The treatment of any such non-neutral corporate event would be announced to all clients with advance notice through regular Index announcements. For the avoidance of doubt, MSCI will continue implementing any neutral corporate events including ones requiring application of a Price Adjustment Factor (PAF),” it further said.
The changes in constituents for the MSCI Global India Index, MSCI India Domestic Small Cap Index and MSCI India Index will take place as of the close of August 31, 2023.