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Journalism of Courage
Shares of housing finance lender HDFC Ltd today fell more than 5 per cent amid reports that the company8217;s weightage is being revised to nearly half on the MSCI Index.
While the company said the methodology for calculating the weightage was wrong,the shares of the company fell 5.31 per cent to an intra-day low of Rs 610.70 on BSE,and was the second worst performer on the 30-share sensitive index Sensex.
On the National Stock Exchange the stock fell 5.39 per cent to its day8217;s low of Rs 610.50.
The weightage of India8217;s biggest mortgage lender has been reduced from 6.2 per cent to 3.2 per cent in the MSCI index,effective May 31.
The company however,said that there is some error in the methodology used for calculation of weightage and the company is communicating the same to Morgan Stanley.
When contacted,an HDFC spokesperson said,8221;MSCI may be considering foreign availability shares that overseas investors can buy in HDFC at 74 per cent which is wrong. It should be 100 per cent. We are communicating this error to Morgan Stanley.8221;
MSCI made some changes in the constituents for the MSCI Global Standard Indices which will take place as of the close of May 31,this year.
Accordingly,MSCI India index will have three additions Bank of Baroda,Cairn India and Godrej Consumer Products,while Suzlon Energy will be deleted from the index.
