Global equity indices compiler MSCI has increased India’s weight on its emerging market index, while it has slightly reduced weights of some bluechips in its India index. The weight of housing finance giant HDFC, however, has been hiked on the MSCI India Index. But the weights of some heavyweights like Reliance Industries, Infosys and TCS have been reduced by 10 basis points each.
The increase in HDFC’s weightage on India index is much more significant — up from 6.21 per cent to 7.46 per cent. The MSCI indices are keenly watched by investors across the world to track trends in stock markets. The proposed changes would be effective from August 31.
In its latest review of various indices, MSCI has increased India’s weightage in its emerging market index to 6.40 per cent, from 6.33 per cent previously. Besides, stocks like Bombay Rayon Fashions, Mindtree, Nava Bharat Ventures and Time Technoplast would be dropped from the MSCI India index of the global index services provider.