2 Indian Stocks Removed From MSCI Index In Semi-Annual Review, 12 Stocks Added

On Wednesday, global index provider MSCI (Morgan Stanley Capital International) announced changes to its Global Standard Indexes as part of its semi-annual index review.

As part of the changes, two Indian stocks, that is Bosch and LIC Housing Finance, will be removed from the index.

On the other hand, 12 stocks will be added to the index:

1. ACC
2. Adani Green Energy
3. Apollo Hospitals
4. Balkrishna Industries
5. IPCA Laboratories
6. Kotak Mahindra Bank
7. Larsen And Toubro Info
8. MRF
9. Muthoot Finance
10. PI Industries
11. Trent
12. Yes Bank

The changes will be effective from 1 December 2020.

Other changes

MSCI INDIA DOMESTIC INDEX
To be added:
Adani Green Energy, Larsen and Toubro Info, Muthoot finance, PI Industries and Yes Bank.

To be deleted:
Bosch and LIC Housing.

MSCI INDIA DOMESTIC SMALL CAP INDEX
To be added:
3M India, Aarti Drugs, Adani Gas, Aditya Birla Capital, Alkyl Amines Chemicals, Advanced Enzyme Tech, Affle (India), Alkyl Amines Chemicals, Aster DM Healthcare, Birlasoft, Bombay Burmah Trading, Castrol India, Central Depository, Cyient, Fine Organic Industries, Firstsource Solutions, Garware Technical Fibres, Infibeam Avenues, IOL Chemicals and Pharmaceuticals Limited, L&T Finance Holdings, LIC Housing Finance, MAS Financial Services, Mindspace Business REIT, Narayana Hrudayalaya, Ratnamani Metals & Tubes, Sonata Software, Tanla Solutions, Thyrocare Technologies, Vaibhav Global, Zensar Technologies and Zydus Wellness.

To be deleted:
Adani Enterprises, Apollo Hospitals, Balakrishna Industries, Future Lifestyle Fashions, GE power India, MOIL, PI Industries and TCNS clothing.

Earlier on 27 October, MSCI said it will implement changes in FOL (Foreign Ownership Limits) in MSCI Global Indexes containing Indian securities. MSCI will be implementing new FOL on 30 November 2020 that will increase India's weightage in MSCI EM (Emerging Market) indices to 8.7 percent from the current level of 8.1 percent.

MS expects India to see passive foreign inflows of US$2.5 billion based on this change.

Meanwhile, Motilal Oswal expects $4.1 billion dollars of fund inflows into domestic equity markets with the biggest beneficiary being Kotak Mahindra Bank. The domestic brokerage and research firm expects Kotak Mahindra Bank to see inflows worth $797 million.

India will see the second-largest number of additions to the MSCI Index after China, in November 2020 rejig. MSCI added 56 stocks from China to the Global Standard Index while deleting 49.