Confusion over MSCI weightage triggers volatility in Bharti Airtel

The stock recouped most of the day's losses after some brokerages pointed out that the reduction in weightage could be on account of an error in computation

Shares of Bharti Airtel witnessed wild swings on Thursday as confusion reigned over its weighting in the widely tracked MSCI India index. Initially, the stock fell more than 4 per cent after a sales note floated by brokerages showed that the global index provider had halved Airtel’s weighting on the MSCI India index from 3.68 per cent to 1.92 per cent during its August review. This reduction of 172 basis points (bps) in weighting would entail passive outflows between Rs 3,500 crore and Rs 3,800 crore, some analysts predicted.

The stock recouped most of the losses after some brokerages pointed out