MSCI on Wednesday said it has excluded Adani Green Energy Ltd and included Hyundai Motor India Ltd from its MSCI India Domestic index. The changes which will take place as of the close of February 28, 2025. Besides, the global index aggregator added at least 20 stocks to MSCI India Domestic Small Cap Index while deleting 17 others. Among stocks that have been added included Greaves Cotton, V2 Retail, Zaggle Prepaid, Websol Energy Systems, Cartrade, Allied Blenders, Ola Electric Mobility Ltd, Niva Bupa Health and Sundaram Clayton. Also, Jyoti CNC Automation, Pearl Global Industries, Shaily Engineering, TBO Tek and Manorama Industries were added to the India Small Cap index.
Jai Corporation Ltd, Sula Vineyards Ltd, DCB Bank Ltd, Bajaj Hindusthan Sugar Ltd, Bharat Bijlee Ltd, Sanghi Movers Ltd, Mahindra Logistics Ltd and Spandana Sphoorty Financial Ltd are some of the stocks that would be excluded from the MSCI India Domestic Small Cap index. The changes are expected to bring in a net passive flows of $850 million to $1 billion, as per some estimates.
MSCI also clarified that starting from the February 2025 Index Review, MSCI will implement the index review changes, including changes in the Number of Shares (NOS), Foreign Inclusion Factor (FIF) and Domestic Inclusion Factor (DIF) of Adani Energy Solutions Ltd that have been previously postponed.
"The proforma changes are announced along with the February 2025 Index Review announcement. The changes will be implemented as of the close of February 28, 2025 (effective March 3, 2025)," it said.
Post the rejig, Indusind Bank is likely to observe a weight increase of $258 million, as per IIFL Capital (Alt Desk).
India's weight now stands at around 19 per cent against 19.8 per cent in November 2024. China's weight has increased to 27.1 per cent from 26.8 per cent earlier.
MSCI said it has been monitoring Adani group and associated securities, including related to free float, and will issue further communication if appropriate.
In the MSCI Global Standard indices, 23 securities would be added to and 107 securities will be deleted from the MSCI ACWI Index.
"The three largest additions to the MSCI World Index measured by full company market capitalization will be United Airlines Holdings (USA), Reddit A (USA) and Natera (USA). The three largest additions to the MSCI Emerging Markets index measured by full company market capitalisation will be Hyundai Motor India (India), Emaar Development (United Arab Emirates) and J&T Global Express B (China)," MSCI said.
In light of currently observed market accessibility issues, MSCI said it would continue to not implement changes as part of this index review for any securities classified in Bangladesh for the MSCI Bangladesh Indexes or impacted composite indices.