In a matter of pride for the Indian automobile industry, three leading automobile companies were among the four added to the prestigious MSCI India Index with effect from the 30th of November.
Four Indian companies, namely Cadila Healthcare, Ashok Leyland, Tata Motors and Maruti Suzuki India will be added to the immensely prestigious MSCI India Index with effect from the 30th of November. This move comes on the back of DLF and Oil India being removed from the same. It is a matter of great pride for the Indian automobile industry that three of these new additions are leading Indian automobile companies. In a reaction to this development, shares of Oil India plunged by 5.16% to rest at Rs. 372.45 on the BSE while DLF lost around 1.56% to end at Rs. 110.25.
The constituent changes in the MSCI global standard index will be taking place from the 30th of November, 2015. The additions have been made and will be effected post that date. Ashok Leyland shares were down by approximately 0.22% while 1.09% was the loss posted by Cadila. Maruti Suzuki saw a dip by 2.59% while Tata Motors dipped 2.16% to end at Rs. 402.85. The changes were announced by MSCI at its semi-annual index review which took place this Friday. Shares of these four companies remained active as the semi-annual reshuffle of indices was conducted by MSCI and a process of inclusion and exclusion was followed according to senior fund managers and other experts. 24 stocks have been included in all while 12 stocks have been dropped from the MSCI India smallcap index.
Small cap index additions include Dishman Pharma, Sun TV and Escorts while high profile removals include Amtek Auto. There are indices possessed by MSCI for its key strategic markets and this addition of three leading Indian car companies is definitely being hailed as a path breaking development.