MSCI February Rejig: NMDC, PNB, BHEL, Union Bank, GMR Airports make the cut

MSCI Index February rejig: Global index services provider Morgan Stanley Capital International (MSCI) has added NMDC, BHEL, PNB, Union Bank and GMR Airports Infra to its Global Standard (Emerging Markets) Index.

The five stocks will now be a part of the MSCI India Index, within the broader cohort of other regional standard indices, with effect from the closing of February 29, 2024.

MSCI said that Punjab National Bank and Union Bank are among the three largest additions to the MSCI Emerging Markets Index in terms of full company market capitalization. The third company will be China-based Midea Group Co A.

The global index aggregator has also added 27 Indian stocks to the MSCI India Smallcap Index with 6 deletions. Here's the list:

Additions	Deletions
Balmer Lawrie	Barbeque Nation
Banco Products	GMR Airports
Cello World	Prestige Estates
Cyient DLM	Privi Specialty Chem
DB Realty	Rail Vikas Nigam
Dhanuka Agritech	Torrent Power
Ethos
Healthcare Global
Hemisphere Properties
Honasa Consumer
IIFL Securities
Indian Renewable Energy
ITD Cementation
J.Kumar Infra
Jaiprakash Associates
Jupiter Life Line Hopsital
Kesoram Industries
KPI Green Energy
MSTC
Netweb Technologies
Paisalo Digital
RattanIndia Power
Sandur Manganese and Iron
SBFC Finance
SpiceJet
Swan Energy
Tarc

Source: MSCI  (India Smallcap index)

As per Nuvama Alternative & Quantitative Research, domestic markets could get inflows of around $1 billion on account of this MSCI rejig.

It expected NMDC ($186 million), Punjab National Bank ($180 million) and Bharat Heavy Electricals, or BHEL, ($156 million) as the key candidates. Read
 

With the February review, MSCI has reportedly raised India's weightage in its Global Standard index to a historic high of 18.2 per cent.

At the end of December 2023, India’s weighting in the MSCI Emerging Market index stood at 16.73 per cent — second-most among the index constituents after China’s 26.53 per cent.