Sesa Goa gains from MSCI membership

Inclusion of a stock in any of the domestic indices might not always bring glory to the counter, but being a part of a globally-tracked one would certainly make a difference.

Maybe that would explain why Sesa Goa managed to post impressive gains in an otherwise bleak session. According to market buzz, the mining major is likely to see itself as a part of the MSCI India index, which is scheduled to be rebalanced in December. On a day when the benchmark Sensex lost more than 200 points or 2.33%, Sesa Goa was up nearly 10% to close at Rs 68.70.

More than 63 lakh shares changed hands on BSE, which was more than double its two-week average quantity of around 30 lakh shares. The market grapevine further added that Sesa Goa is expected to replace Indiabulls Real Estate. Companies that are included in the MSCI indices typically see a spurt in stock prices as many global investors mirror the country-specific constituents while designing their portfolios. The index is rebalanced quarterly (March, June, September and December). As of September 30, 2008, the index comprised 61 companies. The index is calculated by Morgan Stanley Capital International (MSCI) and is denominated in US dollars. Stocks like RIL, Infosys Technologies, ICICI Bank, L&T, HUL and ITC are already a part of the MSCI India index.