MSCI review: 7 additions & 31 deletions in India Index

In its annual review, Morgan Stanley Capital International (MSCI) has made some changes by adding and deleting few stocks with effect from May 31, reports CNBC-TV18’s Nimesh Shah.

In the large cap index, there have been three additions Cairn India, Bank of Baroda and Godrej Consumer. However, Suzlon has been moved out because of the share price correction that the stock has seen in the last one year.
There has been a huge change in the MSCI India midcap index. There are seven additions and there are 31 deletions in that index. The stocks that are added include Corporation Bank, Page Industries, MOIL (Manganese Ore India Limited), Polaris and Suzlon (added to the small cap index).
Meanwhile, 31 stocks were deleted in the small cap index. All these stocks have corrected over 50-60% in the last one year and that is a key reason why these stocks have moved out from the MSCI small cap index. We’ll see this impact on some of the stocks today because thet are very ill-liquid.
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