BackMSCI May 2024 rejig: JSW Energy, Canara Bank among 13 additions; Paytm, Berger Paints among 3 exclusions
MSCI May 2024 rejig: JSW Energy, Canara Bank, NHPC, and Jindal Stainless are among the 13 stocks included in the MSCI Global Standard Index's quarterly review for May. On the other hand, Berger Paints, Indraprastha Gas and Paytm are the three stocks that have been excluded from the index.
PremiumMSCI May 2024 rejig: In its May 2024 review, MSCI has added 13 stocks, including Canara Bank, JSW Energy, NHPC, Indus Towers, and Phoenix Mills, to its Global Standard Index, according to data provided by Nuvama Alternative and Quantitative Research.
PB Fintech, Sundaram Finance, Bosch, Jindal Stainless, Solar Industries, Torrent Power, Mankind Pharma and Thermax were the other stocks that were included in the index.
This inclusion signals healthy capital inflow into their shares.
On the other hand, Berger Paints, Indraprastha Gas and Paytm are the three stocks that have been excluded from the index.
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MSCI (Morgan Stanley Capital International) is a leading provider of equity, fixed-income, and hedge fund indices globally. It periodically reviews and adjusts the constituents of its indices.
The MSCI Global Standard Index is a widely recognised benchmark for global equity markets. Several institutional investors, including mutual funds, exchange-traded funds (ETFs), and pension funds, use it to track the performance of their investments.
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Besides, YES Bank, Zomato, Vedanta, AU Small Finance Bank, Macrotech Developers (Lodha), Polycab India, Samvardhana Motherson, and Suzlon Energy have seen their weight increase in the index.
On the flip side, the weights of Dabur, ICICI Lombard General Insurance Company, Jubilant Foodworks and PI Industries have gone down in the index after the May rejig.
According to Abhilash Pagaria, the head of Nuvama Alternative and Quantitative Research, the MSCI May rejig will likely result in an FII passive inflow of about $2.5 billion in India.
The MSCI Smallcap Index has included 29 stocks, including Indraprastha Gas, Paytm, HUDCO, INOX India, Dilip Buildcon, and Orchid Pharma.
Some 15 stocks, including Borosil, Force Motors, Brightcom Group and Greaves Cotton, have been excluded from the Smallcap Index.
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The changes in the indices after the May rejig will be effective from May 31.
"With 13 inclusions and 3 exclusions, India's net stock count post-rejig will be 146 in the MSCI Standard/EM Index. Additionally, there will be a net inclusion of 14 stocks in the Smallcap Index, bringing India's total stock count in the small-cap index to 497," Pagaria observed.
Pagaria pointed out that India's representation in the MSCI EM Index is set to increase from the current 18.3 per cent to closer to 19 per cent. According to him, this increase in weight, in terms of basis points, is the highest among any EM Index in this rejig.
Disclaimer: The above article is based on data provided by Nuvama Alternative and Quantitative Research. The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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