MSCI Inc.—the world’s biggest index compiler with about $12 trillion in assets benchmarked to its products—added HDFC Life Insurance Company Ltd. to its Global Standard Index and removed Union Bank of India Ltd. from the Global Small Cap Index, besides changing weight of companies on its India indices, effective Aug. 27.
HDFC Ltd. and Reliance Industries Ltd. have the highest weight on the MSCI India Index. Weights were increased for insurance, auto and telecom stocks, while they were lowered for software, banking and energy companies, according to the August 2019 Quarterly Index Review for MSCI Equity Indexes.
That’s because of two updates in the foreign inclusion factors—the headroom available for overseas investors to put money in Indian stocks—and 23 updates due to changes in the number of equity shares of companies forming the India index, the provider of globally tracked investment indices said.
Weight Increases
- HDFC Life Insurance—new addition with a pro forma weight of 0.75 percent.
- Hero MotoCorp Ltd.—with a pro forma weight of 0.71 percent, an increase of 0.34 percent.
- Bharti Airtel Ltd.—with a pro forma weight of 2.06 percent, an increase of 0.23 percent.
- Piramal Enterprises Ltd.—with a pro forma weight of 0.52 percent, an increase of 0.03 percent.
Most global investors, including hedge and pension funds, benchmark their investments to MSCI indices. Any addition or deletion from the MSCI indices usually leads to buying or selling of the stocks by investors.
The MSCI added two stocks and removed one from its India large cap index.
New Additions to MSCI India Large Cap Index
- HDFC Life Insurance with a weight of 0.85 percent.
- Pidilite Industries Ltd. has been shifted from the mid-cap index with a weight of 0.5 percent.
Deletion
- Yes Bank Ltd.—previously had a weight of 0.5 percent— moved to the mid-cap index.
Hero MotoCorp and Bharti Airtel got higher weight on the MSCI India Large Cap Index due to updates in foreign inclusion factors. Weights were cut for large caps such as Infosys Ltd., HDFC, RIL, Tata Consultancy Services Ltd., Axis Bank Ltd., Hindustan Unilever Ltd., ICICI Bank Ltd., ITC Ltd. and Larsen & Toubro Ltd. in the range of 0.03-0.24 percent.
Meanwhile, the MSCI increased the weight of Piramal Enterprises in its mid-cap index. The weights of UPL Ltd., Dr. Reddy’s Laboratories Ltd., Hindalco Industries Ltd., Zee Entertainment Enterprises Ltd., Indiabulls Housing Finance Ltd., Havells India Ltd., United Spirits Ltd., Marico Ltd. and Lupin Ltd. were lowered between 0.01 percent and 0.02 percent.
Also Read: Singapore and India Share a Peace Pipe
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR