MSCI, a leading provider of benchmark indices globally, has decided to rejig its India Index to include three new stocks -- Bharti Airtel, Idea Cellular and Power Finance Corp (PFC).
The three new entrants on the MSCI Global Standard Index (India) would replace SAIL, Housing Development and Infrastructure Ltd (HDIL) and Indiabulls Real Estate, with effect from November 30.
In another change, MSCI has decided to remove two stocks of the Vijay Mallya-led UB group -- Kingfisher Airlines and United Breweries Holdings -- from its Small Cap Index for India, along with other changes in this index.
Besides, Bharti Airtel would also be included in the MSCI Emerging Markets Index, along with Colombian firm Grupo Aval Acciones Pref and Chinese retailer Sun Art Retail Group.
All the changes would come into effect from November 30 and are part of a semi-annual index review for the MSCI Equity Indices, MSCI said in a statement.
Reacting to the news of their inclusion on the MSCI index, share prices of Bharti Airtel, Idea Cellular and PFC, jumped up on the bourses in Mumbai.
Bharti Airtel rose by as much as 2.69% in early morning trade to a high of Rs 412.25, Idea Cellular surged 9.04% to Rs 103.10 and PFC was up 3.89% to Rs 166.80 on the BSE.
At the same time, HDIL fell by 6.56% to a low of Rs 73.35, Indiabulls Real Estate dropped 3.73% to Rs 65.65 and SAIL slumped 6.06% to Rs 93 on the BSE.
MSCI has also rejigged its MSCI Global Small Cap Indices, where it would add ten new Indian stocks -- Britannia Industries, Eros International, HDIL, Indiabulls Real Estate, Indian Overseas Bank, Lanco Infratech, M&M Financial, Patni Computer and Texmaco.
At the same time, as many as 47 Indian stocks would move out of the MSCI Global Small Cap Index. These include Kingfisher Airlines, Bajaj Finserv, Birla Corp, Dish TV, Great Offshore, GTL, ING Vysya, Jubilant Life Sciences, KS Oils, Pantaloon Retail and United Breweries Holdings.
