News

By Kashish Tandon and Bharath Rajeswaran

BENGALURU, Nov 15 (Reuters) - India's weightage in MSCI's Global Standard (Emerging Markets) index will move close to 16.3%, an all-time high, from the current 15.9%, after the index provider's November review.

This marks "a significant increase over the past three years, almost doubling its weight," Nuvama Alternative & Quantitative Research said in a note.

Foreign portfolio investors use the MSCI indexes as a gauge to allocate their passive flows.

MSCI added nine Indian stocks to the index in its November review on Tuesday, with changes to come into effect from market close on Nov. 30. Post the rebalance, India's stock count will rise to 131.

Indian automaker Tata Motors TAMO.NS, cables maker Polycab India POLC.NS, real estate firm Macrotech Developers MACE.NS, IndusInd Bank INBK.NS and Paytm-parent One 97 Communications PAYT.NS were among the nine stocks to be added. No Indian stocks were deleted to accommodate the new additions.

According to Nuvama's calculations, India is likely to receive passive inflows of close to $1.5 billion post the rejig.

IndusInd Bank INBK.NS, Suzlon Energy SUZL.NS, Persistent Systems PERS.NS, and APL Apollo Tubes APLA.NS will each receive maximum inflows of $355 million, $289 million, $255 million and $228 million after the inclusion, the domestic brokerage said.

MSCI added One 97 Communications PAYT.NS and Polycab India POLC.NS to its India Domestic Index, an index focussed on the large- and mid-cap segments of the domestic market.

Power Finance Corp PWFC.NS, REC RECM.NS, IDFC First Bank IDFB.NS, Supreme Industries SUPI.NS and Max Healthcare Institute MAXE.NS have been included in the domestic index.

MSCI's small-cap index, which accounts for approximately 14% of the market capitalisation of Indian stocks in MSCI indexes, also witnessed an inclusion of 41 stocks while 13 stocks were excluded.

Post inclusion into MSCI Global Standard index https://tmsnrt.rs/3SH3xVT

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Editing by Janane Venkatraman)

((Kashish.Tandon@thomsonreuters.com;))

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