MSCI said it will add 13 securities while removing three securities from its MSCI India index, which is part of the MSCI Global Standard Index, to reflect the changes in the equity markets.
The changes, which are being implemented following a quarterly review, would come into effect when the markets close on May 31, the index provider stated on Wednesday.
Why was Paytm removed from the index?
One97 Communications, the parent company of Paytm, was removed from the Global Standard index and downgraded to small cap index from mid cap. The move comes as the fintech firm is expected to see outflows worth $70 million.
Indraprastha Gas, which might see $113 million worth of outflows, was also downgraded to small cap.
Berger Paints, which is likely to witness an outflow of $117 million, was removed from the MSCI index.
Other entrants in the Smallcap Index include Aditya Birla Sun Life AMC, Doms Industries, RR Kabel, Va Tech Wabag, Tips Industries, Gillette India, HUDCO and Puravankara. Those removed include Indoco Remedies, Polyplex Corp, Alok Industries, Rajratan Global Wire, Dreamfolks Services.
The stocks included in the MSCI Global Standard Index include JSW Energy, Canara Bank, Indus Towers in the Large Cap sector as well as Sundaram Finance, NHPC, Bosch, Jindal Stainless, Mankind Pharma, Solar Industries, Thermax and Torrent Power in the Mid Cap sector. MSCI which included PB Fintech and Phoenix Mills in the Global Standard index, upgraded the two stocks from small cap to mid cap.