Paytm, Berger Paints, Others Excluded From MSCI India Index, NHPC, Canara Bank Included: Report

According to an official statement released by the global index provider, One97 Communications, the parent company of payments aggregator Paytm, will no longer be included in the MSCI India Index, a component of the MSCI Global Standard Index.

According to a report by CNBC-TV18, In addition to Paytm, stocks of Berger Paints and Indraprastha Gas (IGL) are also set to be removed from the MSCI India Index.

Paytm and companies such as Suzlon and IndusInd Bank were newly added to the Global Standard Index just last November. However, Paytm’s shares have plunged by over 60% in the past six months following several regulatory issues with the Reserve Bank of India.

According to Nuvama Alternative and Quantitative Research, the reshuffling is anticipated to trigger outflows of approximately $70 million from Paytm and $113 million from IGL. Berger Paints, on the other hand, could experience an outflow of around $117 million, CNBC-TV18 reported.

As part of the recent MSCI reshuffle, 13 stocks have been added to the MSCI India Index. Among them are Indus Towers, whose shares have surged by 70% in 2024, alongside public sector undertakings (PSUs) such as Canara Bank and NHPC. Additionally, modern companies like PB Fintech have also been included in the list.

The MSCI India Index has also welcomed Bosch, Jindal Stainless, JSW Energy, Mankind Pharma, Phoenix Mills, Solar Industries, Sundaram Finance, Thermax, and Torrent Power as new additions.

Mankind Pharma made headlines recently following an exclusive report by CNBC-TV18 revealing its intention to acquire Bharat Serum & Vaccines from Advent.

India’s representation in the MSCI Emerging Market Index has surged to almost 18%, a substantial increase from its level of just under 8% in early 2020. Nuvama Alternative and Quantitative Research predicts that India’s weightage in the EM index will surpass the 20% mark by the second half of 2024.

Paytm and IGL, which have been removed from the MSCI India Index, have now been included in the MSCI India Small Cap Index, which witnessed 29 additions and 15 removals in its most recent reshuffling.