MSCI may add these three stocks in next portfolio rejig

NEW DELHI: Global brokerage firm Morgan Stanley believes that ICICI Prudential Life, SBI Life and Siemens are likely to make their way to the MSCI India index. MSCI is due to announce the results of its semi-annual index review on the morning of November 8 and the changes will take effect on November 27.

There are expectations that MSCI may increase the weightage of ICICI Bank in the index to 5.7 per cent.

“We also expect the weight of ICICI Bank to rise due to upward movement of the adjustment factor as foreign room on the stock goes above 25 per cent,” Morgan Stanley said.


On the other hand, Indiabulls Housing Finance and Glenmark Pharmaceuticals are likely to be excluded from the index.

Morgan Stanley further added that if all the changes were implemented, India's weight in MSCI emerging market index could rise by 37 basis points from the current level of 8.89 per cent.

In the medium term, the proposed announcement to increase the minimum statutory limit for FPI investment in a company from 24 per cent to the foreign investment limit of the sectors has the potential to increase India's weight in MSCI EM by 81 bps.

“We await a press note or circular from the government confirming these changes,” the brokerage house said.