MSCI includes eight newly listed firms

Eight newly listed companies have been added to the the MSCI India Domestic Index. According to an official press release by MSCI, recently-listed companies including Advanced Enzyme, Dilip Buildcon, Equitas Holdings, RBL Bank, Ujjivan Financial Serices, Mahanagar Gas and Infibeam have now been included in the index. On the other hand, 17 companies including Berger Paints, IDFC Bank, M&M Financial Services and Punjab National Bank(PNB) have been removed from the index.

Apart from the new entrants, Reliance Communications, Lakshmi Vilas Bank and Tata Coffee have also been included in the index. The changes will be effective from November 30.

Superior share performance and sound financials of the new entrants could be the reasons behind their inclusion, say market players. Shares of these new companies have rallied significantly since their lisiting. For instance, shares of Ujjivan,Equitas and Infibeam have rallied more than 60 per cent since their listing.

However the news had limited impact on the stock movement of these companies as markets were trading under a heavy negative sentiment on Tuesday. The benchmark Sensex lost two per cent during the session.

Ricoh India, whose parent company Ricoh Japan had indicated a possibility of incorrect financial statements and requested Securities and exchange board of India(Sebi) to investigate into the issue few months ago, has also been dropped from the index.