CNBC-TV18 Nimesh Shah reports on the list of revisions announced by the Morgan Stanley Capital Index (MSCI) effective from November 30.
This is a semi-annual index which MSC announces at this time of the year, so all these changes will be effective from November 30. Divis Labs and United Breweries have been listed to the MSC India Index. Now most of the brokerages estimate close to USD 45-55 million of inflows in both these stocks once these they are listed on the MSCI India Indexc. GMR Infra and United Phosphorus have been shifted from the MSCI India Index to the small-cap MSCI Global Small Cap Indices.
Around 17 changes have been announced in India segment of MSCI Small Cap Indices. Apart from inclusion of GMR and United Phosphorus, other notable additions include MindTree, MCX, SKS Microfinance and TV18 Broadcast. The list of stocks removed from the MSCI include IRB Infra, NIIT Tech, Monnet Ispat, Wockhardt and Tulip Telecom.
The weightage accorded to a few large-cap stocks have been changed due to volatility. Some of the stocks which have been accorded higher weightage include HDFC, Cairn India, HCL Tech and Kotak Mahindra Bank. By virtue of this increase in weightage effective November 30, brokerages estimate that there will be an inflow of USD 70-90 million into these stocks.
Among the stocks on which the weightage has been reduced, Tata Motors is likely to be the worst hit. Most brokerages feel there will be an outflow of close to USD 180 million in that particular stock after November 30, followed by Ultratech Cement from which an outflow of USD 70 million has been estimated.