MSCI Nov rejig: BSE, Voltas, Kalyan Jewellers, Oberoi Realty, Alkem Lab added to global EM index

Global index provider Morgan Stanley Capital International (MSCI) has announced the addition of five Indian stocks to its Global Standard (Emerging Markets) Index as part of its November 2024 review. These additions include the Bombay Stock Exchange (BSE), Voltas, Kalyan Jewellers, Oberoi Realty, and Alkem Laboratories. The latest MSCI index changes are set to take effect on November 25, 2024.

With five additions and no exclusions, India's stock count in the MSCI Emerging Markets (EM) Index will rise to 156, increasing its representation from 19.3% to 19.8%. This gain marks the largest basis-point increase among emerging markets in MSCI's latest review. China, which remains the highest-represented nation with 598 stocks, saw its weight reduced slightly from 27% to 26.8%.

In this November review, HDFC Bank, Tata Power, JSW Energy, Samvardhana Motherson, JSPL, PB Fintech, and APL Apollo Tubes saw an increase in their weightage, driving significant passive inflows.

HDFC Bank, India’s largest private lender, will receive the second tranche of its weightage increase, taking its weightage to 7.08%, the highest among Indian stocks. It is expected to attract around $1.9 billion in inflows, while newly added stocks like Voltas, BSE, Kalyan Jewellers, Oberoi Realty, and Alkem Laboratories are projected to see inflows exceeding $200 million each. Overall, these adjustments could generate net passive inflows of $2.5 billion.

Conversely, stocks like Adani Green Energy, GMR Airports Infra, Adani Power, Reliance Industries, ICICI Bank, Infosys, TCS, and Bharti Airtel will experience a reduction in weightage, potentially leading to outflows.

Contrary to market expectations, MSCI excluded Adani Energy Solutions from its November index review, citing concerns over its free float and a SEBI show-cause notice regarding potential shareholder misclassification.

The review also saw nine additions to the MSCI India Domestic Index with no deletions. Newly included stocks are Voltas, Bombay Stock Exchange, Prestige Estates Projects, Kalyan Jewellers India, JSW Energy, Oberoi Realty, Alkem Laboratories, Jindal Stainless, and Oracle Financial Services Software.

The MSCI India Domestic Large Cap Index saw six additions including Shriram Finance, TVS Motor, CG Power & Industrial, Havells India, Torrent Pharmaceuticals, and JSW Energy. Meanwhile, the MSCI India Domestic Mid Cap Index added eight stocks including Voltas, Bombay Stock Exchange, Prestige Estates, Kalyan Jewellers, Oberoi Realty, Alkem Laboratories, Jindal Stainless, and Oracle Financial Services—while removing Shriram Finance, TVS Motor, CG Power & Industrial, Havells India, and Torrent Pharmaceuticals.

The MSCI India Domestic Small Cap Index recorded 15 additions and 10 deletions. New entries include Brainbees Solutions (FirstCry), Signature Global India, Eureka Forbes, Aadhar Housing Finance, Ganesha Ecosphere, PC Jeweller, Indegene, JSW Holdings, Anup Engineering, and DCM Shriram. Stocks removed from the Small Cap Index include Voltas, Bombay Stock Exchange, Jindal Stainless, Kalyan Jewellers, GMR Airports Infra, Hitachi Energy India, Delta Corp, TCI Express, Hinduja Global Solutions, and Fusion Finance.