Among all new entrants, Lupin is likely to attract the highest inflow, followed by Bharti Infratel. Lupin is likely to carry a weight of 2.02% in the index.
ET Bureau
The quarterly tweaking of the MSCI India Index — a widelytracked emerging market index by global funds — on Wednesday may result in an increase of net inflows from passive foreign funds. India’s weight in the MSCI Emerging Index is expected to increase by 50 basis points from 6.7%. The changes in the index will be effective from May 29.
The MSCI index and the weights often influence decisions of ‘active’ as well as ‘passive’ global fund managers. Active global fund managers benchmark their performance to a MSCI index depending upon the objective of the funds, while passive managers deploy money as per the weights.
In the latest changes, Lupin, Bharti Infratel, Marico, Container Corporation, Bharat Forge, Eicher Motors, Shree Cement, and UPL have been included in the MSCI India Index, while Reliance Infrastructure is the only exclusion from the index.
Among all new entrants, Lupin is likely to attract the highest inflow, followed by Bharti Infratel. Lupin is likely to carry a weight of 2.02% in the index. In MSCI India, weights attached to scrips like Bharti Airtel, Adani Enterprises, GAIL, United Spirits, HCL Technologies, and M&M have been increased, while those on NTPC, DLF and Vedanta have been lowered.
Also, 51 stocks have been added and 8 securities have been deleted from MSCI India Small Cap Index.
ET Bureau
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