MSCI May Axe Debt-Laden Indian Companies From its Indexes
An excavator drops a load of earth into a dump truck at the Tavan Tolgoi coal deposit (Photographer: Taylor Weidman/Bloomberg)  

MSCI May Axe Debt-Laden Indian Companies From its Indexes

(Bloomberg) -- India’s debt-burdened companies could get kicked out of MSCI Inc.’s benchmark index later this week.

Highly indebted companies including Vodafone Idea Ltd., Indiabulls Housing Finance Ltd. and Glenmark Pharmaceuticals Ltd. are likely to be removed from the MSCI India Index, according to brokers.

Most of these companies have seen a sharp erosion in their market values in the wake of the yearlong crisis in India’s credit market. The troubled private lender Yes Bank Ltd. has slumped more than 60% this year, while Indiabulls was axed from the NSE Nifty 50 Index in September after the mortgage lender’s share value more than halved.

BrokerLikely DeletionsLikely Additions
Churchill CapitalGlenmark, Yes BankMuthoot Finance, Godrej Properties
EdelweissGlenmark, Vodafone Idea, Indiabulls Housing, Tata PowerICICI Prudential Life, Siemens Ltd., Berger Paints India
Morgan StanleyGlenmark, Indiabulls HousingSBI Life Insurance Co., ICICI Prudential Life, Siemens Ltd.
InstinetGlenmark, Vodafone Idea, Yes Bank, Indiabulls HousingInfo Edge India, Apollo Hospitals

ICICI Prudential Life Insurance Co. and Siemens Ltd. are companies likely to be added to MSCI’s indexes, according to Morgan Stanley and Edelweiss. The insurer is up more than 50% this year. Siemens slid 0.4% at 10:11 a.m. in Mumbai after reaching a record on Monday.

MSCI will announce the results of its semi-annual review of gauges on Nov. 7 during U.S. hours. The changes will be effective at the close of Nov. 26, the index provider said last month. A company spokeswoman didn’t have any immediate comments to offer.

©2019 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.