MSCI Index review: Morgan Stanley says Tata Consumer, IGL likely to be added in June

Global brokerage house Morgan Stanley feels five stocks - Tata Consumer Products, Indraprastha Gas, Torrent Pharmaceuticals, Biocon and Muthoot Finance - are likely to be included in the MSCI India Index with effect from June 1, 2020.

From the list of these 5 stocks, Tata Consumer Products stands higher chance of inclusion, said the investment firm in its research note on May 8.

In case of Indraprastha Gas and Biocon, there is a medium probability of addition, while Muthoot Finance has low probability of inclusion in the index.

Using the MSCI framework, Morgan Stanley has short-listed above stocks that meet the criteria to be included in the MSCI India Index. The most important conditions to be met are full market-cap and free float market-cap.

MSCI Inc, a leading provider of research-based indexes and analytics, is due to announce the results of its semi-annual index review on May 13, including a list of stock additions and removals along with changes in weightings.

All changes will be made as of the close of May 29,2020 (effective June 1,2020).

Meanwhile, Bharat Forge, Tata Power Company and Mahindra & Mahindra Financial Services are likely to be excluded from the MSCI India index and there is a high probability, said Morgan Stanley.

According to the research firm, MSCI may increase the weight of HDFC Life Insurance in its India index and there is a high probability.