RVNL, OIL India, Dixon Tech shares rally 5% after inclusion in MSCI Index

Shares of Rail Vikas Nigam Ltd, Dixon Technologies, and OIL India among others rose up to 5 per cent after their inclusion in the MSCI India index. 

In its latest reshuffle, the MSCI Global Standard Index included seven companies in the MSCI India. While Bandhan Bank is the only Indian stock that will be removed from the index.

In a statement the global index provider said that RVNL, Vodafone Idea, Dixon Technologies, Oil India, Prestige Estates, Oracle Financial and Zydus Lifesciences have found a place in the MSCI India Index. 

After the announcement, shares of RVNL surged up to 4.61 per cent at Rs 601.75 per share in intraday deals. Dixon Technologies surged 3.29 per cent to Rs 12,051.25 per share intraday, while Oracle Finance soared up to 1.95 per cent at Rs 10,945 per share on the BSE in intraday trade. OIL India also edged up by 3.21 per cent at Rs 689.60 per share .

 

Conversely, shares of Vodafone India, Zydus Lifesciences, and Prestige Estates experienced declines in trading. Vodafone India’s shares fell by 3.12 per cent, reaching Rs 15.51 each. Zydus Lifesciences saw a drop of 3.76 per cent, with shares priced at Rs 1202.60. Prestige Estates' shares decreased by 1.80 per cent, now at Rs 1733.95 each.

The MSCI India Index aims to gauge the performance of large and mid-cap segments within the Indian market. Comprising 146 constituents, the index represents about 85 per cent of the total Indian equity market.

Morgan Stanley Capital International (MSCI) has developed numerous global indices, including the MSCI India Index, which aggregates Indian stocks.

Further, according to reports India's weight on the MSCI Global Standard Index, which tracks emerging market stocks, has reached a new record high. This increase is expected to attract approximately $3 billion in inflows into Indian equity markets. 

Additionally, India has narrowed the gap with China on this key MSCI index. While China's weight will decrease from 25 per cent to 20.2 per cent, India's weight will increase from 19.2 per cent to 19.8 per cent. These adjustments will take effect after the markets close on August 30. India's weight is projected to potentially exceed 20 per cent by the end of November.