MSCI Index Rejig: Nine Stocks Added, No Exclusions from India

MSCI Index Rejig: Nine Stocks Added, No Exclusions from India

In a significant development, MSCI, the global index provider, has declared the incorporation of nine stocks into its MSCI Global Standard Index, effective from the close of November 30, 2023. Among the noteworthy additions are IndusInd Bank, One 97 Communications (Paytm), Tata Motors ‘A’ (Tata Motors DVR), and Suzlon Energy.

The MSCI India Index has now welcomed APL Apollo Tubes, Macrotech Developers, Persistent Systems, Polycab India, and Tata Communications as part of its newly added stocks. Importantly, there have been no removals from the MSCI India Index in this update.

The MSCI Global Standard Indexes hold considerable significance for passive funds, and alterations in constituent stocks or their weightages within these global indices are anticipated to prompt inflows from passive funds tracking these benchmarks.

As per a report from Nuvama Alternative & Quantitative Research, the inclusion of IndusInd Bank in the MSCI Global Standard Index is projected to attract an estimated $290 million in inflows. Other notable additions such as Suzlon Energy may receive $264 million, Persistent Systems $258 million, One97 Communications $163 million, and APL Apollo Tubes $227 million.

Similarly, Polycab India, Macrotech Developers, Tata Motors DVR, and Tata Communications are expected to experience inflows of $190 million, $183 million, $173 million, and $160 million, respectively, following their inclusion in the MSCI Global Standard Index.

In addition to the Standard Index, MSCI has also revealed modifications to the MSCI India Smallcap Index. The updated index will include 42 stocks, while 19 stocks will be excluded. Key entrants to the Smallcap Index include Ashoka Buildcon, Arvind Fashions, Concord Biotech, DB Corp, Force Motors, Gokaldas Exports, MOIL, Hindustan Construction Company, Orient Cements, PTC India, SJVN, and Ujjivan Financial Services, among others.

On the other hand, stocks such as ACC, APL Apollo Tubes, BHEL, Delta Corp, Indian Bank, Jindal Stainless, OIL India, Persistent System, Suzlon Energy, Thermax, Vodafone Idea, among others, will be excluded from the MSCI India Smallcap Index.