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Last Updated : Oct 23, 2019 11:44 AM IST | Source: Moneycontrol.com

SBI Life, ICICI Pru, Siemens in MSCI India Index? Here's what Morgan Stanley thinks

MSCI is due to announce the results of its semiannual index review on the morning of November 8, including a list of stock additions and removals along with changes in weightings.

 
 
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Global financial firm Morgan Stanley is of the view that SBI Life Insurance Company, ICICI Prudential Life Insurance Company and Siemens may find a place in the MSCI India index after the upcoming review.

On the other hand, Indiabulls Housing Finance and Glenmark Pharma could be on their way out and the weight of ICICI Bank may rise.

"The weight of ICICI Bank may rise due to upward movement of the adjustment factor as foreign room on the stock goes above 25 percent," Morgan Stanley said in a recent report.

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Morgan Stanley shortlisted these stocks using the MSCI framework, in which the most important conditions to be met are full market cap and free -float market cap.

The rejig in the index is deemed important as the stocks being included tend to outperform in the run-up to their inclusion in key indices, Morgan Stanley said.

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MSCI is due to announce the results of its semiannual index review on the morning of November 8, including a list of stock additions and removals along with changes in weightings. The changes will be effective November 27.

"If all the above changes were implemented, India's weight in MSCI EM could rise by 37bps from the current level of 8.89 percent," Morgan Stanley said.

The global financial firm thinks that over the medium term, the proposed Finance Minister's announcement to increase the minimum statutory limit for FPI investment in a company be increased from 24 percent to the foreign investment limit of the sectors has the potential to increase India's weight in MSCI EM by 81bps.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.

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First Published on Oct 23, 2019 11:36 am

tags #MSCI #stocks

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