Four Indian companies will join the MSCI Global Standard Index in the index provider’s November review, in a move expected to bring in billions of dollars of foreign investment.
Life Insurance Corporation of India (LIC), Coforge, Adani Green Energy and Meesho have been added to the index. PI Industries is the only stock to be dropped. The changes were announced by MSCI early on Thursday, November 12, and will take effect at the close of trading on November 30.
India’s weight in the MSCI Emerging Markets Index will rise to 13.1% from 12.9% as a result of the review, reflecting the country’s growing presence in global benchmarks.
The additions matter because trillions of dollars of global investment funds track MSCI’s indices. When a stock is added, funds that follow the index have to buy it, which brings in foreign money automatically.
According to estimates by Nuvama Alternative & Quantitative Research, Coforge could attract the highest inflow of about $630 million. LIC could see inflows of about $468 million, followed by Adani Green Energy at about $348 million and Meesho at about $307 million. Together, the four additions could bring in around $1.7 billion.
LIC was one of the largest additions to the MSCI Emerging Markets Index in the review, measured by the full market value of the company.
After the reshuffle, the MSCI Global Standard Index will have 168 Indian constituents, up from 165.
The November review is one of MSCI’s regular quarterly reshuffles, in which it reviews the stocks in its indices based on their size, liquidity and foreign ownership limits. For Indian markets, the additions are a sign of the growing weight of the country’s biggest companies in global portfolios.
