Coal India to enter MSCI indices from November 22

Coal India, which made a big-bang debut on Indian bourses on November 4, will enter MSCI indices, including the MSCI India, from November 22.

Coal India will be added to the large-cap segment of the MSCI Global Standard Indices, according to an announcement by MSCI on its website.

Coal India’s stock will be part of the MSCI India Standard index. It will also be part of all those indices where India is included, including the MSCI Asia, the MSCI Asia ex-Japan, the MSCI Asia Pacific, the MSCI Asia Pacific ex-Japan, among others.

FTSE, another leading index provider which manages indices like the FTSE 100, has already included the world’s largest coal producer’s in two of its global indices with effect from November 5. The index compiler has added Coal India’s stock into the FTSE All-World Index and the FTSE All-Emerging Index on a fast-entry basis.

Inclusion in prestigious global indices attracts buying from exchange-traded funds (ETFs) which track them.

The FTSE All-World index is tracked by the Vanguard Total World Stock exchange traded fund (ETF), which has assets under management of about $736 million. Seven ETFs and exchange-traded notes that track MSCI India, like Lyxor ETF MSCI India and iPath MSCI India, manage assets worth $4.3 billion, according to Bloomberg data. Coal India’s shares fell 5.49 per cent to Rs 330.45 on Monday on the Bombay Stock Exchange (BSE) as investors booked profit after the stock gained over 42 per cent since debut.