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  5. MSCI India August rejig: Bosch, Dixon Tech, PB Fintech to enter India Domestic Index; check other key details

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MSCI India August rejig: Bosch, Dixon Tech, PB Fintech to enter India Domestic Index; check other key details

Upstox
By Upstox News Desk

3 min read | Updated on August 30, 2024, 11:02 IST

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SUMMARY

Moreover, as many as 25 scrips will enter the MSCI India Domestic Small Cap Index. The names include Go Digit General Insurance, Gulf Oil Lubricants, Paras Defense and Space Technologies, Heritage Foods, Shakti Pumps, and Max Estates, among others. 

Stock list

DIXON
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MSCI is an acronym for Morgan Stanley Capital International

MSCI is an acronym for Morgan Stanley Capital International

Bosch, Dixon Technologies India, Oil India, PB Fintech, Phoenix Mills, Rail Vikas Nigam, Vodafone Idea, and Zydus Lifesciences are the eight scrips that will be added to the MSCI India Domestic Index in the latest rebalancing act of the global index provider.

The changes will be effective as of the close of August 30, 2024.

MSCi.webp
Moreover, as many as 25 scrips will enter the MSCI India Domestic Small Cap Index. The names include Go Digit General Insurance, Gulf Oil Lubricants, Paras Defense and Space Technologies, Heritage Foods, Shakti Pumps, and Max Estates, among others. 
Besides, eight stocks have been removed from the index. The list includes names such as Cochin Shipyard, Jaiprakash Associates, and PB Fintech, among others. 
msciii.webp

Furthermore, MSCI, in its earlier press release, said it will maintain HDFC Bank in MSCI Indexes with an increase in the Foreign Inclusion Factor (FIF) from 0.37 to 0.56 as of the close of August 30, 2024 (effective September 2, 2024), coinciding with the August 2024 Index Review. 

HDFC Bank is subject to a Foreign Ownership Limit (FOL) of 74% and an adjustment factor of 0.5. Based on the latest available shareholding disclosure, the foreign room is above 25%.

"As mentioned in the MSCI Global Investable Market Indexes (GIMI) methodology, securities with foreign room greater than 25% are maintained in the MSCI GIMI Indexes with an adjustment factor of 1. However, in view of the significant weight of HDFC Bank in the MSCI India Index, MSCI will apply an adjustment factor of 0.75 along with the August 2024 Index Review," it said.

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The remaining increase of the adjustment factor from 0.75 to 1 would be implemented as part of the November Index Review in the event the foreign room continues to be at least 20% at that time, the press release added. 

As per news reports, an increase in HDFC Bank's weightage in the MSCI indices will see potential inflows of $1.8 billion. 

About MSCI rebalancing

All MSCI indexes are rebalanced regularly, and the methodologies governing indexes are reviewed at least annually. It generally rebalances its indexes quarterly, on the last trading day of the month. The cutoff date for market capitalisation and prices used for the rebalancing is nine business days before the end of February, May, August, and November. 

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What is MSCI?

MSCI is an acronym for Morgan Stanley Capital International. It is an investment research firm that provides stock indexes, portfolio risk and performance analytics, and governance tools to institutional investors and hedge funds.

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