MSCI Rejig In February: Mamaearth, Ireda, Cello World Could See Inclusion In SmallCap Index

MSCI Inc. will announce the list of companies for its index rejig in February. India currently commands a 17.

1% share in the MSCI EM Index. Due to the country’s current momentum and outperformance as compared with other emerging markets, Nuvama projects that the index representation could cross 20% by mid-2024. “Eligibility criteria for newly listed securities are checked based on the data for a three-month period instead of a six-mont.

. . MSCI Inc.

will announce the list of companies for its index rejig in February. India currently commands a 17. 1% share in the MSCI EM Index.

Due to the country’s current momentum and outperformance as compared with other emerging markets, Nuvama projects that the index representation could cross 20% by mid-2024. “Eligibility criteria for newly listed securities are checked based on the data for a three-month period instead of a six-month period,” IDBI Capital said in a note. “The stock to be added should meet the impact cost criteria, and its free-float market capitalisation should be 1.

5 times the free-float market capitalisation of the smallest constituent in Nifty 50,” it said. The global cut-off period for the MSCI Feb. 24 rejig is Jan.

18 to 31, though the selection day will happen in the initial few days of the cut-off period. The announcement for the same is scheduled for Feb. 12, with adjustments on Feb.

29, according to Nuvama. ALSO READ Cochin Shipyard To Trade Ex- Split on January 10 Opinion Cochin Shipyard To Trade Ex- Split on January 10 Read More MSCI Global Standard Index Jindal Stainless, Punjab National Bank, BHEL, NMDC and Oberoi Realty are the stocks that are currently qualifying for inclusion in the MSCO Standard Index, according to Nuvama. Other names on the radar for the MSCI Standard Index include Alkem Laboratories, Union Bank of India, Solar Industries and Prestige Estate Project, among other companies, if they have a 2–6% price surge.

Dalmia Bharat, NHPC, GMR Airports Infra, and FSN Ecommerce Venture could be potential exclusions, but they need to have an 8–12% price surge. Facebook X (was Twitter) ALSO READ Cyclical Recovery On The Horizon For Rural Economy, Says InCred’s Mrinal Singh Opinion Cyclical Recovery On The Horizon For Rural Economy, Says InCred’s Mrinal Singh Read More MSCI SmallCap Index Ireda, Mamaearth’s parent Honasa Consumer, Cello World, Jaiprakash Associates, RR Kabel are few of the names that could see inclusion in the MSCI Smallcap index, according to Nuvama. GMR Airports Infrastructure and Prestige Estates could be excluded from the index.

Facebook X (was Twitter) India’s representation on the MSCI EM pack was steady at around 8% from 2015 till Oct. 2020. Since Nov.

2020, Nuvama has doubled its representation, and it is currently at 17. 1%. This can be attributed to multiple reasons: India’s standardised foreign ownership limit in 2020.

Robust performance by Indian equities, particularly in the midcap segment, led to numerous inclusions in every review. Relative underperformance by other EM packs, especially China. India’s stock count in the MSCI Standard index has risen to 131 in 2023, with the inclusion of a net of 17 Indian stocks over the past four reviews, Nuvama said.

“This marks an improvement from 2022, where only a net of nine Indian stocks were included,” the note said. The notable factors contributing to this increase in 2023 include India’s substantial rally compared to other emerging markets and MSCI’s shift from semi-annual to quarterly rebalancing for stock inclusions and exclusions. ALSO READ Chris Wood Prefers Buying India Over China Despite Recent Stock Run-Up Opinion Chris Wood Prefers Buying India Over China Despite Recent Stock Run-Up Read More.