Msci Index Entrants Up

The new shares in the revamped Morgan Stanley Capital International (MSCI) emerging markets free index rose in an otherwise flat day following expectations of increased foreign-fund buying in these stocks.

On the other hand, some of the shares which have been dropped from the index clocked a decline in their prices.

India's largest private refiner, Reliance Petroleum Ltd, ended at Rs 54, up by 1.84 per cent; non-durable consumer goods maker Dabur India closed at Rs 73.85, up 5.5 per cent; private sector HDFC Bank wound up at Rs 237.05, up 0.83 per cent; telecom carrier Videsh Sanchar Nigam Ltd ended up 0.51 per cent at Rs 346.60; and, Britannia Industries closed higher by 2.04 per cent at Rs 650.65.

The shares that witnessed a fall following their deletion from the index are Jaiprakash Industries and Escorts Ltd. Jaiprakash closed lower by 1.34 per cent at Rs 33.25 and Escorts ended down by 0.63 per cent at Rs 78.95.

"Foreign fund holding in some of these companies is below its permitted level and funds benchmarking their performance to MSCI Index are expected to increase buying in these stocks for alignment," a foreign fund manager said.

Foreign institutional investors have ploughed in huge investments in the country, during the current calendar year, which have crossed the Rs 10,000 crore mark.

These flows came in despite the announcement of MSCI in December last that it would adjust its indices for free float.