Global Index provider MSCI has announced the list of additions and deletions for May 2022 Rejig. The global index provider MSCI (Morgan Stanley Capital International) rebalances its indices semi-annually and quarterly.
Adani Power, AU Small Finance Bank, Jindal Steel and Power (JSPL), Tata Elxsi are the stocks that have been added to the MSCI India index whereas HDFC Asset Management (AMC) has been deleted. The changes in constituents for the indexes will take place as of the close of May 31, 2022.
To be eligible for inclusion in a MSCI index, a leading provider of research-based indexes and analytics, a security’s Foreign Inclusion Factor (FIF) must reach a certain threshold. The FIF of a security is defined as the proportion of shares outstanding that is available for purchase in the public equity markets by international investors.
A report by Edelweiss Alternative & Quantitative Research had suggested that Jindal Steel & Power, Adani Power and Tata Elxsi could get included in the MSCI India index. The list is broadly in-line with its expectations with one surprise (AU Bank).
On the other hand, 50 smallcap stocks have been added to MSCI India Domestic Small Cap Index whereas 10 securities have been deleted from the index.
The additions include Apollo Tricoat Tubes, Aptus Value HSG Finance, Bharat Dynamics, CE Info Systems, Easy Trip Planners, Equitas Small Finance, ESAB India, GHCL, Go Fashions India, Godawari Power and Ispat, Greaves Cotton, Greenpanel Industries, among others.
Adani Power Ltd, Bajaj Consumer Care, Cholamandalam Investment, Future Retail, GMR Power & Urban Infra, IOL Chemicals and Pharma, Jindal Steel & Power, NCL India, Solara Active Pharma, Spandana Sphoorty Fin, have been removed from the smallcap India index.