MSCI rejig may result in up to $250 million inflows

The tweaking of the MSCI quarterly index — a widely tracked emerging market equity index — on Wednesday night may result in net inflow of $180-250 million to Indian stocks from foreign funds.

In the MSCI Emerging Index, India’s weight is expected to increase by 8-10 bps from 8.1%. Bosch India has now been included in the MSCI India index with a weight of 0.89%.

In MSCI India, weights attached to scrips like ACC, Hero MotoCorp and Coal India have been increased, while those of HDFC and Infosys have been lowered. Hathway Cable has been deleted from the small-cap index.






The changes will be effective from February 27. The MSCI index and the weightage of stocks often influence decisions of ‘active’ and ‘passive’ global fund managers. Active managers benchmark their performance to an MSCI index depending on the objective of the fund raised; passive managers deploy money as per the weights.