MSCI Barra Reshuffles MSCI India Domestic Smallcap Index as New Entrants Better Reflect Glowing Economy and Improving Business Climate

Index service provider MSCI has announced multiple changes in its MSCI India Domestic Smallcap Index applicable from May 31, 2023. The Morgan Stanley’s MSCI has revised the constituents of its India-based index on Friday, May 12, saying effective change will be applicable from May 31, 2023 onwards.

MSCI has announced to add as many 14 stocks to its index, which includes 6 stocks which went public less than 12 months ago. On the other hand, it will delist 8 existing names from the index.

Among the new additions, Bikaji Foods International, Fusion Micro Finance, Kaynes Technologies, KFin Technologies, Syrma SGS Technology and NMDC steel have spent less than 12 months as listed stock at Dalal Street.

The MSCI India Small Cap Index is designed to measure the performance of the small cap segment of the Indian market. With 408 constituents, the index represents approximately 14% of the free float-adjusted market capitalization of the India equity universe. The MSCI India Small Cap Index was launched on Jun 01, 2007.

According to the latest data, India’s economy is doing well. Thus, the S&P Global India Manufacturing PMI rose to a 4-month high of 57.2 in April 2023 from 56.4 in May, beating market forecasts of 55.8, as both output and new orders grew the most in 4 months, amid sustaining expansions in sales. At the same time, employment increased while suppliers were reportedly able to deliver purchased materials in a timely manner, with vendor performance improving to the greatest extent in eight months, though only slightly overall.