Grasim Industries gains after inclusion in MSCI India index

The stock rallied 5% to Rs 1,024 on the BSE in intra-day trade.

Grasim Industries rallied 5% to Rs 1,024 on the BSE in intra-day trade in an otherwise range-bound market, after index compiler MSCI included the company in MSCI India Index.

MSCI Inc, a leading provider of research-based indexes and analytics, on February 9 announced the results of the February 2017 Quarterly Index Review for the MSCI Equity Indexes.

The changes will take place as of the close of February 28, 2017, MSCI said in a statement on Thursday. CLICK HERE TO READ FULL RELEASE.

Stocks that get included in the MSCI indices usually attract flows. There are passive funds that keep tracking these inclusions to keep tabs on the overall market sentiment.

Meanwhile, earlier this month, the board of directors of Grasim Industries approved increase in limits for investment in equity share capital by Registered Foreign Portfolio Investors (RFPIs) including foreign portfolio investors to 49% from 30%.

The company convened an Extra Ordinary General Meeting (EGM) of the members of the company on March 03, 2017 to obtain the approval of the shareholders to the above proposal.

At 10:07 am; the stock was up 4.3% at Rs 1,014 as compared to 0.13% rise in the S&P BSE Sensex. A combined 2.36 million shares have already changed hands on the counter in first 45 minutes of trade on the NSE and BSE.