Zydus Lifesciences, Mankind Pharma, Bosch, Jindal Stainless, Oberoi Realty, Phoenix Mills, Sundaram Finance, and PB Fintech are among 17 stocks that are likely to be included in the MSCI Standard index during the May 2024 index reconfiguration, according to estimates by IIFL Alternative Research.
MSCI will announce the changes in constituents of the MSCI global standard indices on May 14, while the changes will take place on May 31.
Global passive funds, such as exchange-traded funds (ETFs), structure their portfolios based on these indices. As a result, any inclusion or exclusion and change in composition lead to these funds adjusting their allocations to these stocks.
The total inflow on account of the stock inclusions will be almost $3.2 billion, said IIFL Securities’ Senior Vice President Sriram Velayudhan.
According to an estimate by IIFL Alternate Research, PB Fintech is expected to witness an inflow of $250 million if included in the MSCI index, while Zydus Life, Phoenix Mills, Sundaram Finance, NHPC, and Torrent Power are anticipated to receive an inflow between $200 and $230 million.
Other stocks that are likely to be included in the MSCI index, according to IIFL, include Solar Industries, Oracle Financials, Oil India, Canara Bank, Indus Tower and JSW Energy.
Paytm parent One97 Communications is likely to be excluded from the index, which may result in an outflow of $90 million, IIFL said. Paytm stock plunged 52% in the past six months.
FAQs
The MSCI India index measures the performance of the large and mid-cap segments of the Indian market. MSCI recently rebalanced its India index, adding 13 stocks and deleting 3, bringing the total number of stocks to 146.
What does MSCI stand for in stocks? ›
MSCI stands for the investment research firm Morgan Stanley Capital International, now MSCI Inc., which has been a fully independent, stand-alone public company since 2009. There are more than 200,000 MSCI indexes that are used to track the performance of industries, sectors, and regions. 7.
What are the new entry in MSCI index? ›
The following are changes in constituents for the MSCI India Domestic Index, which will take place as of the close of May 31, 2024. Seven securities will be added namely Indus Towers, Mankind Pharma, NHPC, NMDC, Solar Industries India, Sundaram Finance and Torrent Power.
What is MSCI August 2024 review? ›
London - August 12, 2024 – MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced the results of the August 2024 Index Review for the MSCI Equity Indexes. All changes will be implemented as of the close of August 30, 2024.
What does rebalance mean in stocks? ›
Essentially, rebalancing means selling some assets in your portfolio and buying others to help maintain your target asset allocation. This is especially important during times of significant market volatility. Understanding rebalancing–and doing it well–is important in helping you meet your investing goals.
What happens when a stock is removed from MSCI? ›
They buy all the shares in the index, driving up the share price of a new company that has been added to the index. The opposite happens when a company is removed from the index: the funds sell the stock, which causes the stock price to fall, at least in the short term.
Is MSCI owned by Morgan Stanley? ›
(MSCI) is a leading provider of global indices and benchmark related products and services to investors worldwide. Morgan Stanley Dean Witter is the majority shareholder of MSCI, and The Capital Group Companies, Inc., a global investment management group, is a minority shareholder.
What is the difference between S&P index and MSCI? ›
MSCI World offers exposure to a broader range of global equities across developed markets, providing investors with more international diversification compared to the S&P 500, which focuses solely on U.S. large-cap stocks.
How does MSCI make money? ›
MSCI receives compensation in connection with licensing its indexes to third parties. MSCI Inc.'s revenue includes fees based on assets in Index Linked Investments.
Why is MSCI important? ›
It is an investment research firm that provides stock indexes, portfolio risk and performance analytics, and governance tools to institutional investors and hedge funds. MSCI is perhaps best known for its benchmark indexes—including the MSCI Emerging Market Index and MSCI Frontier Markets Index.
MSCI WORLD - ETF components Amundi MSCI World V UCITS ETF Acc - USD
Add to a list 0 selected To use this feature you must be a member Log inSign up | Price | 1st Jan change |
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MICROSOFT CORPORATION | 413.12 | +9.86% |
APPLE INC. | 229.79 | +19.35% |
NVIDIA CORPORATION | 117.59 | +137.45% |
AMAZON.COM, INC. | 172.12 | +13.28% |
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Is MSCI a good investment? ›
If we assume the returns on the MSCI world index in the past 40 years are a good predictor for future performance, then it is a good investment. On average, non-inflation adjusted returns are around 10% per year, as is typically quoted in most sources.
Is an MSCI good? ›
A student with an MSci is more likely to find themselves on a fast track career with a higher salary and more opportunities as a result of the extra investment in their skills.
What is a good MSCI score? ›
MSCI - ESG Ratings by Industry-Adjusted Score |
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AAA | Leader | 8.571 – 10.0 |
AA | Leader | 7.143 – 8.571 |
A | Average | 5.714 – 7.143 |
BBB | Average | 4.286 – 5.714 |
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What is the average annual return of the MSCI? ›
Annual returns
So far in 2024 (YTD), the MSCI World Financials index has returned an average 19.30%.
What is the difference between S&P and MSCI? ›
MSCI World offers exposure to a broader range of global equities across developed markets, providing investors with more international diversification compared to the S&P 500, which focuses solely on U.S. large-cap stocks.
What happens during index rebalancing? ›
Index rebalancing involves an initial review of assets, setting criteria based on market conditions, and making subsequent adjustments to asset weights, sometimes leading to the addition or removal of specific assets.
How often is the MSCI index rebalanced? ›
The index rebalancing frequency is typically quarterly or semi-annually, but can be daily, monthly or triggered by conditions specified in the relevant methodology.