M&M gains 3.8% amid MSCI addition talk

Investors watch the MSCI index as they are the benchmarks for most global mutual and exchanged-traded funds

Mahindra & Mahindra rose 3.8% in early trades amid speculation the share could be added to the MSCI Emerging Markets index soon. M&M shares were at Rs 893.15 at 10:55 am on Tuesday.

Investors closely watch changes in MSCI indices because they are the benchmarks for most global mutual and exchanged-traded funds. Brokers said funds with assets of about $1.4 trillion are benchmarked to the MSCI Emerging Markets index.

The company is also scheduled to announce its results today. Analysts expect M&M to post a net profit growth of 16-18% in the first quarter from the same period a year ago.

M&M shares had hit a 52-week low of Rs 730.55 on the same day last year. On Tuesday, shares of M&M group entity, Tech Mahindra was up 4% at Rs 1,316.25.