By Vivek Kumar M and Bharath Rajeswaran
(Reuters) -MSCI will add four India-listed companies, including Fortis Healthcare and fintech firm Paytm, to Global Standard Indexes as part of its quarterly review effective November 24, the index provider said late Wednesday.
The other two companies joining the index are power firms GE Vernova T&D India and Siemens Energy India.
The inclusion of the four Indian stocks in MSCI’s Global Standard Indexes is expected to attract total inflows of about $1.46 billion, according to Nuvama.
MSCI’s indexes serve as key benchmarks for global investors, with about $18.3 trillion of assets under management linked to them. As a result, even small adjustments in index composition can lead to significant fund flows across markets.
The index provider will also remove IT company Tata Elxsi and logistics company Container Corporation of India from its flagship index, likely prompting outflows of $162 million and $146 million, respectively.
Additionally, the weightage of eight Indian stocks will increase while seven will witness a reduction.
Among the eight stocks gaining higher weightage in MSCI’s index are Asian Paints, Apollo Hospitals, Lupin, and SRF.
The weightage of Samvardhana Motherson, Dr. Reddy’s, REC, and Zydus Life has been reduced in the latest review.
Overall, India’s weight in MSCI Standard Index will rise to 15.6% from 15.5%, said Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research.
In its previous quarterly index review in August, the index provider had added Swiggy, Vishal Mega Mart and two other stocks to its flagship index.
In addition to the main index changes, MSCI will include six Indian stocks and remove 30 from its Global Small-Cap Indexes as part of its latest quarterly review.
Higher exclusions come amid an increase in global minimum market capitalisation size requirement to $404 million from $448 million, IIFL said.
India recorded the second-highest number of small-cap exclusions globally after the United States, highlighting the growing impact of stricter eligibility criteria on smaller firms.
(Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sherry Jacob-Phillips)
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