The forthcoming half-yearly review for MSCI India index on May 13 may see the inclusion of Tata Consumer Products, Biocon, Indraprastha Gas, Torrent Pharma and Muthoot Finance into the index. The changes will take effect from June 1.

In a report, MSCI Index Rebalancing: Potential Changes, one of the leading global index managers said, Bharat Forge, Tata Power Co and Mahindra & Mahindra Financail Services may face exclusion from the index and weightage of HDFC Standard Life Insurance in the index may see an uptick.

Meanwhile, another important rejig involving Indian stocks did not happen on May 9. “In light of the current market conditions and with India continuing to be in lockdown due to the Covid-19 pandemic which adds to the uncertainty leading into the June 2020 FTSE GEIS quarterly review, FTSE Russell proposes to delay implementation and provide an update by June 30, 2020,” it said.

“Subject to confirmation by June 30, FTSE Russell proposes to implement the changes to the India FOL (foreign ownership limit) within FTSE GEIS (Global Equity Index Series) and associated indices commencing in conjunction with the September 2020 FTSE GEIS semi-annual review, with the implementation proposed to be conducted over four quarterly tranches in September 2020, December 2020, March 2021 and June 2021,” it added.

Market experts expected about $2 billion inflow into Indian stocks after the rebalancing. L&T, Bajaj Finance, Nestle India, Divi’s, Britannia, Tata Steel, Bharti Infratel, Colgate, Cipla and NTPC could have benefitted from the move due to increase in weightage.

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