Sensex, Nifty gain on hopes of higher inflows after MSCI Index rejig

Hopes of higher foreign inflows into local mkts after change in foreign ownership limits drive rally

Indian shares ended higher on Tuesday, fuelled by hopes of higher foreign inflows into local markets after MSCI said it would revise its global indices to reflect changes in the country's foreign ownership limits.

The Nifty50 index closed up 1.03 per cent at 11,889.4, while the Sensex ended 0.94 per cent higher at 40,522.1.

MSCI said on Monday it would implement changes in foreign ownership limits (FOL) in the MSCI global indexes containing Indian securities in November.

Morgan Stanley said in a note it expects the MSCI India index to see passive inflows of $2.5 billion following the changes. It also listed Kotak