MSCI Rejigs: Canara Bank, NHPC, JSW Energy, Bosh Among 13 Stocks Added In India Index; How Stocks Reacted

Leading provider of critical decision support tools and services for the global investment community, MSCI has announced the e May 2024 Index Review for the Equity Indexes. These changes will come into effect from May 31, 2024. In its India Index, MSCI has added 13 stocks, while excluding Paytm, Berger Paints, and Indraprastha Gas.

In the MSCI India Index, the 13 stocks to be added from May 31 are -- Bosch, Canara Bank, Indus Towers, Jindal Stainless, JSW Energy, Mankind Pharma, NHPC, PB Fintech, Phoenix Mills, Solar Industries India, Thermax and Torrent Power.

Alongside, three stocks will be deleted from the MSCI India Index. These are Paytm, Berger Paints, and Indraprastha Gas.

Despite these 13 stocks that have been added to the MSCI India index, their reaction to BSE and NSE has been a mixed bag. While the three stocks excluded on the index traded between volatile to bearish tone.

How Stocks Have Reacted On May 15:

At the time of writing, Bosch shares tumbled by 2.94% to Rs 30,968.05 apiece, while Jindal Stainless slipped by 2.5% to Rs 693.75 apiece, and Mankind Pharma plunged by 1.05% to Rs 2223.75 apiece. Also, NHPC shares were down by 0.9% to Rs 98.10 apiece, and Solar Industries shed 2.6% to Rs 8381 apiece.

Among the stocks to trade higher was -- Canara Bank which gained by nearly 5% to Rs 118.75 apiece, adjusted to a stock split ratio of 1:5 which turned ex-split on May 15 as well. Meanwhile, shares of Indus Tower, JSW Energy, and Torrent Power gained by nearly 1% each.

Also, the share price of Thermax zoomed by 8.4% to Rs 5084.45 apiece, after touching a new 52-week high of Rs 5,347.15 apiece in the early trade. Lastly, PB Fintech stock shot up by 4% to trade at Rs 1278.05 apiece.

On the other hand, Berger Paints share is down by 1.7% to Rs 486.20 apiece, while IGL stock slipped by 1.5% to Rs 438.20 apiece, and Paytm shares dipped by 1.4% to trade at Rs 335.05 apiece.

In this May 2024 review, MSCI added the most number of securities in the India index, while most deletions of stocks were made in the China and Japan indexes.

Under the MSCI Global Standard Indexes, forty-two securities will be added to and 121 securities will be deleted from the MSCI ACWI Index.

In its press release, MSCI said, the three largest additions to the MSCI World Index measured by full company market capitalization will be Microstrategy (USA), Pure Storage (USA) and Emcor Group (USA). 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).

In other indexes, the following additions and deletions are made as per MSCI:

MSCI Global Small Cap Indexes: There will be 233 additions to and 293 deletions from the MSCI ACWI Small Cap Index.

MSCI Global Investable Market Indexes: There will be 187 additions to and 326 deletions from the MSCI ACWI Investable Market Index (IMI).

MSCI Global All Cap Indexes: There will be 113 additions to and 83 deletions from the MSCI World All Cap Index.

MSCI Frontier Markets Indexes: There will be nine additions to and five deletions from the MSCI Frontier Markets Index. The three largest additions to the MSCI Frontier Markets Index measured by full company market capitalization will be Digi Communications (Romania), Koncar Distributivni I (Croatia) and Air Astana GDR (Kazakhstan). There will be 27 additions to and six deletions from the MSCI Frontier Markets Small Cap Index.

Based on the feedback from market participants, liquidity in the Egyptian and Kenyan foreign exchange markets and the ability of foreign investors to repatriate capital from the Egyptian and Kenyan equity markets have improved. MSCI will resume the implementation of index review changes for Kenyan and Egyptian securities in the MSCI Equity Indexes starting this index review.

In light of currently observed market accessibility issues, MSCI will continue to not implement changes as part of this Index Review for any securities classified in Bangladesh for the MSCI Bangladesh Indexes or impacted composite indexes.