As per brokers, MSCI Inc. will remove debt laden companies from its benchmark index later in the week. Consequently, companies heavily in debt such as the likes of Vodafone Idea, Indiabulls housing finance and Glenmark are likey to ousted from the MSCI India Index.
The credit market has faced serious trouble this year and owing to it few of the renowned names have sharply lost their market value. In light of this, Indiabulls has already been removed from the Nifty 50 in September this year as it lost over 50% value.
The index will then be replaced with stocks namely ICICI Prudential and Siemens which have in fact managed to gain ground. The results of the half-yearly review of the gauges will be announced by MSCI on November 7 and the changes will come into effect from the close of November 26.
Different brokerages hope addition and deletion of different stocks such as Edelweiss views deletion of Glenmark, Vodafone Idea, Indiabulls Housing, Tata Power, at the same time holds that ICICI Prudential Life, Siemens Ltd., Berger Paints India will instead be added to the index.