MSCI adds five Indian equities to key Global Index

MSCI, a global index provider, added five Indian companies to its Global Standard Index on Wednesday. According to the brokerage Nuvama, this addition will increase India's weightage in the index to 20%, further narrowing the gap with China. MSCI stated that there will be 156 Indian stocks in the index, which is only about one-fourth of China’s 598 stocks. This indicates that there is potential for further inclusion of Indian stocks in the future.

MSCI said the changes will take place after the markets close on Nov. 25. The inclusion of the stocks will lift India's weightage in the index to a record 19.8% from 19.3% earlier, narrowing the gap with China, which has slipped to 26.8% from 27%, Nuvama Alternative and Quantitative Research estimated. It will also likely attract $2.5 billion in passive inflows into India's equity markets, Nuvama said.

Read Also : HURL signs Momentous Partnership of USD 60 Million Buyers' Credit Facility

HDFC Bank is now the highest-weighted Indian stock in the MSCI indices at 7.08%, surpassing Reliance Industries at 6.08%. No Indian companies have been removed from the MSCI Global Standard Index so far in November.

Thirteen firms were added to the MSCI Small Cap Index, including Eureka Forbes, Indegene, and PC Jeweller, increasing the total number of small-cap stocks to 525.

Read Also : Sanjay Malhotra appointed as new Governor of RBI