MSCI It announced raising India’s representation in its global benchmark index to a record 18.2% on Tuesday, which is expected to bring inflows of about $1.2 billion, according to analysts’ estimates.
The adjustment will take effect after market close on February 29, following MSCI’s February assessment, a Reuters report said.
Since November 2020, India’s position in the index has seen a significant rise, currently standing at 17.9%.
Tata Motors And Macrotech Developers Introduced as large-cap in MSCI Domestic Index Punjab National BankCanara Bank and Embassy Office Park REITs are joining the mid-cap segment.
Bharat Heavy Electricals, Persistent Systems, MRF, Suzlon Energy and Cummins India were shifted from the small-cap category to the mid-cap index, and around 27 small-cap stocks were added to the MSCI Domestic index, including six others. Were. Reclassified or deleted.
As Nuvma Alternative and Quantitative Research said, this high is mainly attributed to the continued surge in India’s stock market and the comparative lag in performance of other emerging markets, especially China.
India now holds the second largest load MSCI Global Standard IndexFollowing China.
Nuvama estimates that with ongoing investment from domestic institutions and active participation from foreign portfolio investors, India’s share in the index could exceed 20% by the early months of 2024.
In its recent update, MSCI added five new Indian companies to its Global Standard indices, while choosing not to remove any. In contrast, it excluded 66 Chinese companies but added five.
Punjab National Bank and Union Bank of India were included in the large-cap segment, while Bharat Heavy Electricals and NMDC were added to the mid-cap category. GMR Airports Infrastructure was reclassified from small-cap category to mid-cap segment.
Nuvama estimates that as a result of the February assessment, up to $1.2 billion of passive foreign investment could flow into India.
What is MSCI Global Standard Index?
The MSCI Global Standard Index is a leading stock index created by Morgan Stanley Capital International (MSCI) that represents large- and mid-cap equity performance in 23 developed market countries. It covers approximately 85% of the free float-adjusted market capitalization in each country, providing a broad and comprehensive reflection of the global equity market.
The index is widely used by institutional investors around the world to benchmark global portfolios and make investment decisions. It consists of companies that meet specific criteria of market size, liquidity and financial viability, ensuring that the index only reflects the performance of companies that are considered stable and investable.
The inclusion of a country or company in the MSCI Global Standard Index is important because it signals to the international investment community that the market or company is accessible and operates under favorable market conditions. This often results in increased inflows of foreign investment into the country’s stock market or company shares.
For countries and companies, being part of the MSCI Global Standard Index can mean greater visibility, higher liquidity and access to a broader base of potential investors. It is a symbol of recognition and confidence that can increase the investment appeal of the market or company.
(with inputs from agencies)
The adjustment will take effect after market close on February 29, following MSCI’s February assessment, a Reuters report said.
Since November 2020, India’s position in the index has seen a significant rise, currently standing at 17.9%.
Tata Motors And Macrotech Developers Introduced as large-cap in MSCI Domestic Index Punjab National BankCanara Bank and Embassy Office Park REITs are joining the mid-cap segment.
Bharat Heavy Electricals, Persistent Systems, MRF, Suzlon Energy and Cummins India were shifted from the small-cap category to the mid-cap index, and around 27 small-cap stocks were added to the MSCI Domestic index, including six others. Were. Reclassified or deleted.
As Nuvma Alternative and Quantitative Research said, this high is mainly attributed to the continued surge in India’s stock market and the comparative lag in performance of other emerging markets, especially China.
India now holds the second largest load MSCI Global Standard IndexFollowing China.
Nuvama estimates that with ongoing investment from domestic institutions and active participation from foreign portfolio investors, India’s share in the index could exceed 20% by the early months of 2024.
In its recent update, MSCI added five new Indian companies to its Global Standard indices, while choosing not to remove any. In contrast, it excluded 66 Chinese companies but added five.
Punjab National Bank and Union Bank of India were included in the large-cap segment, while Bharat Heavy Electricals and NMDC were added to the mid-cap category. GMR Airports Infrastructure was reclassified from small-cap category to mid-cap segment.
Nuvama estimates that as a result of the February assessment, up to $1.2 billion of passive foreign investment could flow into India.
What is MSCI Global Standard Index?
The MSCI Global Standard Index is a leading stock index created by Morgan Stanley Capital International (MSCI) that represents large- and mid-cap equity performance in 23 developed market countries. It covers approximately 85% of the free float-adjusted market capitalization in each country, providing a broad and comprehensive reflection of the global equity market.
The index is widely used by institutional investors around the world to benchmark global portfolios and make investment decisions. It consists of companies that meet specific criteria of market size, liquidity and financial viability, ensuring that the index only reflects the performance of companies that are considered stable and investable.
The inclusion of a country or company in the MSCI Global Standard Index is important because it signals to the international investment community that the market or company is accessible and operates under favorable market conditions. This often results in increased inflows of foreign investment into the country’s stock market or company shares.
For countries and companies, being part of the MSCI Global Standard Index can mean greater visibility, higher liquidity and access to a broader base of potential investors. It is a symbol of recognition and confidence that can increase the investment appeal of the market or company.
(with inputs from agencies)
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