MSCI review: Bank of Baroda to be added to Global Standard; shares rise

In MSCI Global Standard Indexes, the three largest additions to the MSCI Emerging Markets Index measured by market capitalization will be Bank of Baroda, Shanghai Aiko Solar Energy and Kakaopay Corp, the index provider said. Shares of Bank of Baroda rose nearly 2% to ₹172 apiece on the BSE in Friday’s opening deals.

Meanwhile, two additions and 1 deletion have been done in the India index – CG Power Industries and Shriram Finance have been added whereas Biocon Ltd has been deleted. The following are changes in constituents for the MSCI India Domestic Index, which will take place as of the close of February 28, 2023.

Further, the MSCI India Domestic Smallcap Index will witness 24 additions and 5 deletions. It will see inclusion of DCB Bank, Delhivery, GR Infra, Ion Exchange, Karnataka Bank, Railtel Corporation of India, RateGain Travel Tech, among others whereas CarTrade Tech, Shilpa Medicare, Shriram Finance, Sequent Scientific and Johnson Controls Hitachi will be removed from the list.

The MSCI All country world index includes large and midcap stocks from 23 developed and 24 emerging markets according to MSCI. Its constituents’ market capitalization totalled just above $60 trillion at the end of last month. The MSCI emerging markets index had nearly 1,400 constituents with about $6.8 trillion in market cap, as per Reuters. The May 2023 review will be announced on May 11, 2023 with effective date being June 01, 2023.

To be eligible for inclusion in a MSCI index, a leading provider of research-based indexes and analytics, a security’s Foreign Inclusion Factor (FIF) must reach a certain threshold. The FIF of a security is defined as the proportion of shares outstanding that is available for purchase in the public equity markets by international investors.