MSCI May Review: Here's What Has Changed For India Stocks
Hindustan Aeronautics, Max Healthcare Institute and Sona BLW Precision Forgings were added to MSCI's emerging markets index.
Index provider MSCI Inc. added three India stocks to its emerging markets index on Friday as part of its May review.
Defence manufacturer Hindustan Aeronautics Ltd., hospital chain operator Max Healthcare Institute Ltd. and auto components maker Sona BLW Precision Forgings Ltd. were added to the index under the quarterly rejig, a statement from the index provider showed.
Max Healthcare has been upgraded from the small -cap to the mid -cap index. The changes will be effective as of the close of May 31.
Hindustan Aeronautics and Sona BLW Precision were also added to the MSCI Domestic Indexes.
Gland Pharma was the top addition to MSCI Domestic Small Cap Indexes, the statement read.
Major Deletions
Among the notable deletions, MSCI removed Adani Transmission Ltd. and Adani Total Gas Ltd. from its Emerging Markets Index. Both companies were removed from the MSCI Domestic Indexes as well, along with Indus Towers Ltd.
Among the top deletions from the MSCI Emerging Markets Small Cap Index were Polycab India Ltd. and Max Healthcare (which has been upgraded to the mid-cap index).
Meanwhile, Abbott India Ltd. was removed from the MSCI Domestic Small Cap Indexes.
India's weight in the MSCI Global Standard Indexes–Emerging Markets remains unchanged at 13.1% after the May rejig, the index compiler said.
The nation's one-way index turnover after the quarterly rejig stands at 3.53%, MSCI said in a statement released on Friday. This index turnover corresponds to the proportion of assets that should be bought in a portfolio replicating the index.
MSCI India Domestic Index
The MSCI India Domestic Index saw two additions and three deletions under the May rejig, while the overall one-way index turnover stands at 19.
There will be 29 updates in the Domestic Inclusion Factors and 55 updates in the number of shares, MSCI stated.
Along with the additions, Larsen & Toubro, Axis Bank, Maruti Suzuki India, Ultratech Cement, Oil & Natural Gas Corporation, NTPC, Power Grid Corporation Of India and Interglobe Aviation saw the biggest weight increases in the domestic index.
Apart from the deletions of Adani Transmission and Adani Total Gas and Indus Towers, the securities that saw the most weight decrease were ITC, Kotak Mahindra Bank, Indus Towers, JSW Steel, Infosys, Hindalco Industries, Tech Mahindra and Shree Cement.
Reliance Industries, the largest company in the country, continued to have the largest weight in the MSCI India Domestic Index. The subsequent securities on the list of largest index weights included HDFC Bank, ICICI Bank, Housing Development Finance Corporation, Infosys, Tata Consultancy Services, Kotak Mahindra Bank, Axis Bank, Larsen & Toubro and ITC.
Disclaimer: AMG Media Networks Ltd., a subsidiary of Adani Enterprises Ltd., holds 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.