MSCI Review: Weight Of Four Adani Stocks Reduced, Bank Of Baroda Added To EM Index
The index provider may now review the affected Adani Group stocks during its semi-annual review scheduled to be announced in May.
No stocks linked to the Adani Group were removed from MSCI Inc. indexes after its quarterly review; however, the weightage of four Adani Group companies was reduced from the indices.
After the index provider reviewed the free float status of the conglomerates' securities, they decided to tweak the foreign inclusion factor for Adani Enterprises Ltd., Adani Total Gas Ltd., Adani Transmission Ltd., and ACC Ltd. Changes will be implemented effective March 1.
As of now, Adani Enterprises Ltd., Adani Ports Ltd., Adani Total Gas Ltd., Adani Green Energy Ltd., Adani Transmission Ltd., Adani Power Ltd., Ambuja Cement Ltd., and ACC are constituents of MSCI's indexes.
Key Highlights: MSCI Quarterly Review
Bank of Baroda was one of the three largest additions to the MSCI Emerging Markets Index, which is measured by full company market capitalisation.
Additionally, the MSCI India Domestic Index was tweaked as CG Power and Industrial Solutions Ltd. and Shriram Finance Ltd. were added to the list of constituents.
Biocon Ltd., on the other hand, was excluded from the MSCI India Domestic Index and added to the MSCI India Domestic Small Cap Index.
Furthermore, Reliance Steel & Aluminum (USA) was one of the three largest additions to the MSCI World Index.
The index provider may now review the affected Adani Group securities during its semi-annual review scheduled to be announced on May 11, 2023.
Key Additions And Deletions
The global index provider announced other key additions and deletions to the indices in the February 2023 Index Review.
The following are changes in constituents for the MSCI India Domestic Index, which will take place as of the close of February 28, 2023.
The three largest additions to the MSCI Emerging Markets Index were Bank of Baroda (India), Shanghai Aiko Solar Energy A (Hong Kong, China), and Kakaopay Corp (Korea).
Following are the inclusions and exclusions of constituents from the MSCI India Domestic Small Cap Index, which will take place as of the close of February 28, 2023.
Adani Group: Stock Performance
As of 11:30 a.m., the group companies for which the MSCI weightage has been reduced declined in trade, except Adani Enterprises Ltd., which advanced 0.80%.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.