MSCI Indexes May rejig to come into force from May 31 close: Canara, JSW Energy among the 3 largest additions to MSCI EM Index

In mid-May, MSCI as part of the MSCI Equity Indexes May 2024 Index Review announced changes in constituents for the MSCI Global Standard Indexes which will come into force from the closing of May 31, 2024.

In the MSCI Emerging Markets Index, the weight of India will increase to 19 per cent from the current 18.3 per cent.

Furthermore, in the MSCI Global Standard Index, 13 Indian securities will be added, while 3 will see an exclusion. The three largest additions to the MSCI Emerging Markets Index measured by full company market capitalization will be Chandra Asri Pacific (Indonesia), JSW Energy (India) and Canara Bank (India), noted the MSCI’s press release.

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Consequently, the MSCI Standard Index will now comprise as many as 146 Indian companies as against the earlier 136. While, the MSCI Smallcap Index will house as many as 497 Indian listed entities. Amid the rejig, there is expected a passive fund inflow to the tune of $2.5 billion as any additions or alterations, triggers global passive funds to realign their portfolio.

MSCI India Index additions and their likely inflows

MSCI India Index exclusions and their likely outflows

In the MSCI Global Small Cap Indexes, 29 stocks will be added from India in the Asia Pacific region, while 15 shall be ousted

The stocks that will be added to the index are Azad Engineering, AB Sunlife , IGL, PayTM , Orchid Pharma, Choice International and Dilip Buildcon among others, while stocks to be excluded from the index are Alok Industries, Borosil, Dreamfolks, Polyplex, Tatva Chintan and Indoco Remedies among others.