Morgan Stanley index adds 12 more stocks

The stocks included in the MSCI India Index are: Arvind Mills, BEL, Bharat Forge, Biocon, Glenmark, Jet Airways, Nicholas Piramal, UTI Bank, Reliance Energy, Kotak Mahindra Bank, Jindal Steel, and Matrix Labs. Punjab Tractors has been deleted from the MSCI India Index.

But market players, especially FIIs, were disappointed at the selection of the new entrants. They were of the view that no substantial increase in the weightage may limit the FII interest in Indian equities. The Sensex lost 5 points at 6,451 on the BSE on Friday.

Says Andrew Holland, Chief Administrative Officer & Executive Vice-President-Research, DSP Merrill Lynch: “The change in MSCI index does not mean much as the overall weightage for India has been negligible. It is good that the basket of stocks has increased, but a few like NTPC and Bharti Tele Ventures still did not find place in the MSCI Index. Due to the inclusion of new stocks there many be a change in portfolio, but there would not be any major FIIs flows due to the revision of the index.”

Adds Vineet Bhatnagar, CEO, Refco-Sify: “I do not think there will be a reshuffling in the portfolio of overseas investors due to the revision of the MSCI Index. We are in a stage were investors are savvy about active management and not passive management of funds, therefore a change in global indices is not expected see make any major changes in portfolio of investors. However, few stocks that have entered the list of MSCI Index will certainly enjoy some attraction from investors.”