MSCI will include 12 Indian stocks and exclude two others as part of semi-annual index review of its MSCI Global Standard Index. The changes to the index will come in to effect as of the close of November 30, 2020.
The inclusion of stocks implies that weightage of India in MSCI Indices will increase. It will also lead to leading to massive inflows to the tune of $2.5 billion via passive funds.
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"MSCI India's weight in MSCI Emerging Market Index will increase to 8.7 per cent (due to weight increases for current constituents) and 8.8 per cent (due to new additions) from the current level of 8.1 per cent, resulting in passive inflows of $1.93 billion and $0.6 billion, respectively," said Morgan Stanley.
Additions
ACC
ADANI GREEN ENERGY
APOLLO HOSPITALS
BALKRISHNA INDUSTRIES
IPCA LABORATORIES
KOTAK MAHINDRA BANK
LARSEN AND TOUBRO INFO MRF
MUTHOOT FINANCE
PI INDUSTRIES
TRENT
YES BANK
Removal
BOSCH
LIC Housing Finance
Reacting to the announcement, share of Kotak Mahindra rose 3.71 % to Rs 1817 against previous close of Rs 1752 on BSE. YES Bank share rose 5% to Rs 14.21 against previous close of Rs 13.54. PI Industries share rose 3.12% intra day to Rs 2324 against previous close of Rs 2253.
MSCI also said it would include 30 India shares to its global smallcap index and remove 8 as part of the semi-annual review. The changes in components for the MSCI Global Small Cap Indexes will take place as of the close of November 30, 2020, MSCI said.