MSCI is an Index, 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 of different country’s’ 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 from the definition of the MSCI India Index.
MSCI India Index Stocks list, Weightage, Review, and Chart
MSCI includes more than 10 major sectors like finance, IT, energy, etc. Before step into the MSCI India Index stock lists, weight-age, review, updated news, let’s get acquainted with 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, 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, regions.
The MSCI Frontier Markets Index forms of the large and mid-cap represent across 29 Frontier Markets (FM) countries. This includes 116 constituents and covering about 85% of the free float-adjusted market capitalization in each country.
What is the MSCI India Index?
As you can see in the chart that MSCI India belongs to the emerging markets index which is designed to represent 24 emerging markets.
The MSCI India is alike to weighted index Sensex. The weight-age of stocks depends on different parameters. The specific weight-age of a company is based on its performance like total turnover, dividend return, market cap. Foreign investors’ investment directly dependent on stocks’ weight-age on the MSCI index. Therefore, the greater the weight-age, higher will be the foreign investment rate.
Latest Technical MSCI India Data Updates
The above figures are taken from the MSCI official website. It reflects cumulative index performance, annual performance, 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 weight=age of a company is based on gross turnover, market capitalization, and dividend return. Therefore, as I’ve mentioned earlier that greater the weight-age, higher will be the foreign investment into stocks.
MSCI India Announcement and Updated News
Latest Update – 26th November 2019
From 26th November 2019, some changes again was applicable in constituents for the MSCI India Domestic small-cap index. As per the data, 8 securities 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 was applicable in constituents for the MSCI India Domestic small-cap index. As per the data, 14 securities added and 10 are deleted.
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, RELIANCE COMMUNICATION, 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 MSCI India
- It is also measurement of the performance of the large and mid-cap segments of the Indian market.
- The review process repeats quarterly in February, May, August, November.
- As per the current information, with 80 constituents, the index covers 85% of the Indian equity.
- Top 10 holdings of MSCI India are Reliance Industries, HDFC, Infosys, TCS, Axis Bank, HUL, ITC, ICICI Bank, Maruti Suzuki, and L&T.
The information covers almost all the data of the MSCI India Index.
