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MSCI Global has added 12 Indian stocks, including Kotak Mahindra Bank and YES Bank, to MSCI India Index in its Semi Annual Index Review on Tuesday.
The other stocks are ACC, Adani Green Energy, Apollo Hospitals, Balkirshna Industries, IPCA Lab, L&T Infotech, MRF, Muthoot Finance, PI Industries and Trent. The global index major, however, excluded LIC Housing Finance and Bosh from the index. Most of the stocks included in the list surged . Apollo Hospitals was the biggest gainer by ending the day 7.67 per cent higher on the BSE at ₹2,187.90, followed by Adani Green (5 per cent) and YES Bank (4.95 per cent). Though IPCA Lab, L&T Infotech, MRF and Muthoot Finance opened the day on a strong note, they closed the day in the red by losing between 1 per cent and 1.5 per cent.
On the other hand, excluded companies LIC Housing Finance and Bosch also ended the day in the green, up 0.6 per cent and 2.6 per cent, respectively.
The changes in MSCI India Index will take effect from December 1.
MSCI also added 12 stocks -- Aavas Financiers, Astrazeneca, Balrampur Chini, BEML, Chalet Hotels, Essel Propack, L&T Technology Services, Linde India, Maharashtra Scooters, Oil India, TCNS Clothing and Ujjivan Finance-- to MSCI Small Cap Index, and removed Asahi India, CESC Ventures, DCM Shriram, GMDC, ISGEC Heavy, Reliance Communications, Shankara Building Products, Spencer's Retail and Tejas Networks.
$2.5b inflow expected
The MSCI’s index revamp decision was done after the recent disclosure of foreign investment limits for Indian securities by National Securities Depository Ltd and Central Depository Services Ltd.
Earlier in a note, Morgan Stanley Research said it expected MSCI India to see passive inflows of $2.5 billion on this.
MSCI India's weight in MSCI EM will increase to 8.7 per cent (weight increases for current constituents) and 8.8 per cent (new additions) from the current level of 8.1 per cent, and passive inflows of $1.93 billion and $0.6 billion, respectively, Morgan Stanley Research had said.
Earlier, the global index major in June had deferred its index revamp. “MSCI will defer until further notice potential increases in FOL resulting from the recently implemented relaxation of the Foreign Portfolio Investor (FPI) limit of Indian companies to the sectoral limit,” it had said.
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