Havells gains, RCom drops after MSCI rejig

Meanwhile, the US-based firm has removed RCom, Rural Electrification and United Breweries for the MSCI India Index

US-based index provider MSCI has announced changes to a number of its index funds, impacting several Indian companies. It has included Havells India, Bajaj Finance, YES Bank and Titan to the MSCI India Index, widely followed by global investors seeking exposure to the Indian market.

Meanwhile, the US-based firm has removed Reliance Communications (RCom), Rural Electrification Corporation (REC) and United Breweries for the MSCI India Index.

Shares of Havells rallied 5.2 per cent, while that of RCom and United Breweries declined 5.3 per cent and 3.9 per cent, respectively, on Friday. The benchmark Sensex fell 1.17 per cent.

Stocks that have been included in the index will see an increase in foreign flows, while those excluded could see overseas investors cutting their exposure.

The changes will be applicable as of market close on May 31. Additionally, MSCI has made changes to World, US Large Cap and World Small Cap indices.