MSCI is an Index, that stands for Morgan Stanley Capital International, mainly used for the measurement of the equity market. MSCI ACWI and Frontier Markets Index is a globalized index which forms different countries’ indices. It is basically a float-adjusted market capitalization index. The content covers the MSCI India Index Stocks list, Weightage, Review, and Chart. So, let’s start with the definition of the index first.
What is MSCI India Index?
MSCI India belongs to the emerging markets index which is designed to represent 24 emerging markets. This is alike to the weighted index of BSE Sensex. The weightage of stocks depends on different parameters. The specific weightage of a company is based on its performance like total turnover, dividend return, and market cap. Also, foreign investors or FII investment data is directly dependent on stocks’ weightage on the MSCI index. Therefore, the greater the weightage, the higher will be the foreign investment rate.
Stock Sectors in the MSCI India Index
MSCI includes more than 10 major sectors like finance, IT, energy, etc. Before stepping into the MSCI India Index stock lists, weight-age, review, and updated news, let’s first know the details of the main MSCI index.
Let’s get a brief idea regarding MSCI ACWI and frontier markets index.
MSCI ACWI represents the performance of the set of large and mid-cap stocks across 23 developed and 24 emerging markets. According to the data, as of December 2018, more than 2700 constituents are present in it. India belongs to the MSCI ACWI index. It is built using the GIMI (Global Investable Market Index) methodology which is designed to take into account across, market cap sizes, sectors, and regions.
The MSCI Frontier Markets Index forms the large and mid-cap represent across 29 Frontier Markets (FM) countries. This includes 116 constituents and covers about 85% of the free float-adjusted market capitalization in each country.
Latest Technical Data Updates for MSCI India
We have taken the above figures from the MSCI official website. It reflects cumulative index performance, annual performance, and gross returns. risk and return characteristics fundamentals etc.
The chart displays sector-wise weights like financials 23.45%, IT 17.84%, Energy 16.3%, Consumer Staples 10.23%, Materials 8.32%, healthcare 5.26%, Utilities, Industries, Communication service, etc.
Reason Why FII (Foreign Institutional Investors) Use MSCI India Index
One of the primary looks out of FII is checking the stability and volatility in the price of shares through the MSCI India index. In the Indian Capital Market, the index almost acts as an indicator. The company weightage of a company is based on gross turnover, market capitalization, and dividend return. Therefore, as I’ve mentioned earlier the greater the weightage, the higher will be the foreign investment into stocks.
Announcement and Updated News
Latest Update – 26th November 2019
From 26th November 2019, some changes again were applicable in constituents for the MSCI India Domestic small-cap index. As per the data, 8 securities were added and 4 are deleted.
Added Securities: BERGER PAINTS, DLF, HDFC ASSET MANAGEMENT COMPANY, ICICI PRU LIFE INSURANCE, INDRAPRASTHA GAS, INFO EDGE, SBI LIFE INSURANCE, SIEMENS INDIA.
Deleted Securities: GLENMARK PHARMA, INDIABULLS HOUSING FINANCE, VODAFONE IDEA, YES BANK.
Previous Update – 28th May 2019
After 28th May 2019, some changes were applicable in constituents for the MSCI India Domestic small-cap index. As per the data, they added 14 securities and deleted 10.
Added Securities: AAVAS FINANCIERS, ABBOTT INDIA, ADANI GAS, ASTRAZENECA PHARMA INDIA, BALRAMPUR CHINI MILLS, CHALET HOTELS, CREDIT ACCESS GRAMEEN, L&T TECHNOLOGY SERVICES, OIL INDIA, ORIENT ELECTRIC, SANOFI INDIA, TCNS CLOTHING
Deleted Securities: CESC VENTURES, DCM SHRIRAM, GUJARAT MINERAL DEV CORP, RCOM, RELIANCE POWER, S H KELKAR & CO, SHANKARA BLDG PRODUCTS, SPENCER’S RETAIL, SUPREME PETROCHEM, TRIVENI TURBINE
Features of MSCI India
Here is the list of features of the MSCI India index.
- It is also a measurement of the performance of the large and mid-cap segments of the Indian market.
- The review process repeats quarterly in February, May, August, and November.
- As per the current information, with 80 constituents, the index covers 85% of Indian equity.
- The top 10 holdings of MSCI India are Reliance Industries, HDFC, Infosys, TCS, Axis Bank, HUL, ITC, ICICI Bank, Maruti Suzuki, and L&T.
The MSCI Index for India is an index that measures the performance of selected stocks traded on Indian exchanges. The index includes large and mid-cap securities listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
The MSCI Index is a stock market index created by Morgan Stanley Capital International (MSCI) which tracks the overall performance of equity markets in different countries around the world. The India-based stocks included in this index are representative of the major sectors such as financials, information technology, consumer discretionary, energy, and industrials.
Stocks included in the Global MSCI Indices include several leading companies across various industries based out of India. Some well-known names include HDFC Bank, State Bank of India, ICICI Bank Ltd., Tata Consultancy Services Limited (TCS), Infosys Technologies Limited and Reliance Industries Ltd.
You can invest via Mutual Funds or Exchange Traded Funds(ETFs). Depending upon your investment goals you may choose either option to gain exposure to the global markets through investing in MSCE’s indexes. So, choose from among top-performing funds that track indices or individual giants like HDFC Equity Fund or SBI Bluechip fund etc.
In conclusion, the MSCI India Index and its stocks list, weightage, etc is an essential tool for both new and experienced investors in the Indian stock market. It provides a reliable way of gauging how well certain stocks are doing within India’s markets and highlighting financial trends which can be used to inform investing decisions. Therefore, anyone looking to better understand the Indian stock market should familiarize themselves with the index as it will usually give strong indications about what direction investments could take in the future.