MSCI rejig: Zomato, IRCTC, Tata Power among 7 stocks to find place in standard index; IPCA Labs, REC excluded

Morgan Stanley Capital International (MSCI), the global Index provider, has announced the list of additions and deletions for November. As per the latest rejig, as many as nine changes—7 additions and 2 exclusions — of securities have been made by the global index provider in the list.  The changes were made as per the results of the November 2021 Semi-Annual Index Review for the MSCI Equity Indexes.  

The changes will take place as on November 30, 2021. Post the adjustment on November 30, the count of Indian stocks in MSCI Standard Index will increase from 101 to 106 stocks.

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Securities that have been added in the index are: Zomato, Indian Railway Catering and Tourism Corporation (IRCTC), SRF, Tata Power, Mindtree, Godrej Properties, Mphasis, Bharat Electronics, Bajaj Holdings And Investment Ltd. IPCA Laboratories and REC have seen exclusion from the list, as per MSCI November 2021 Semi-Annual Index Review.  

Source: Edelweiss Alternative Research

"As per our assessment, the fresh addition and deletions will lead to total inflow of USD 1.2bn. This is ex of weights changes in existing stocks," said Edelweiss Alternative Research.  

MSCI rebalances its indices semi-annually and quarterly.  

Earlier, Edelweiss Alternative Research has pointed out that points out that stocks like Tata Power, SRF, Mphasis, Godrej Properties, Mind Tree, IRCTC and Zomato may find place in the index. Also, IPCA Labs and REC limited may see exclusion from the index, it had said.

"As per our early assessment, all the MSCI potential high conviction inclusion names hold a strong chance to move from the current midcap categorization to the large-cap categorization. While, Zomato will be for sure fresh entrant in the large-cap category," it had said.