The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    MSCI may axe debt-laden Indian companies from its indices

    Synopsis

    Debt-burdened companies could get kicked out of MSCI Inc.’s benchmark index later this week.

    Getty Images
    MSCI will announce the results of its semi-annual review of gauges on Nov. 7 during US hours.

    Related Companies

    NSE
    BSE

    PEER COMPANIES

    PEER COMPANIES

    By Abhishek Vishnoi

    India’s debt-burdened companies could get kicked out of MSCI Inc.’s benchmark index later this week.

    Highly indebted companies including Vodafone Idea Ltd., Indiabulls Housing Finance Ltd. and Glenmark Pharmaceuticals Ltd. are likely to be removed from the MSCI India Index, according to brokers.

    Most of these companies have seen a sharp erosion in their market values in the wake of the yearlong crisis in India’s credit market. The troubled private lender Yes Bank Ltd. has slumped more than 60 per cent this year, while Indiabulls was axed from the NSE Nifty 50 Index in September after the mortgage lender’s share value more than halved.

    Broker Likely Deletions Likely Additions
    Churchill Capital Glenmark, Yes Bank Muthoot Finance, Godrej Properties
    Edelweiss Glenmark, Vodafone Idea, Indiabulls Housing, Tata Power ICICI Prudential Life, Siemens Ltd., Berger Paints India
    Morgan Stanley Glenmark, Indiabulls Housing SBI Life Insurance Co, ICICI Prudential Life, Siemens Ltd.
    Instinet Glenmark, Vodafone Idea, Yes Bank, Indiabulls Housing Info Edge India, Apollo Hospitals

    ICICI Prudential Life Insurance Co. and Siemens Ltd. are companies likely to be added to MSCI’s indexes, according to Morgan Stanley and Edelweiss. The insurer is up more than 50 per cent this year. Siemens slid 0.4 per cent at 10:11 a.m. in Mumbai after reaching a record on Monday.

    MSCI will announce the results of its semi-annual review of gauges on Nov. 7 during US hours. The changes will be effective at the close of Nov. 26, the index provider said last month. A company spokeswoman didn’t have any immediate comments to offer.
    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Also Read

    The Economic Times