MSCI to change its methodology for the treatment of securities with limited investability due to foreign ownership restrictions.
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- Within the MSCI Emerging Markets Index,
- Bharti Airtel (IN) would be partially added with an adjustment factor of 0.5
- The weight of State Bank of India (IN) would be increased through the application of an adjustment factor of 1.0 (currently at 0.5)
- The weight of ICICI Bank (IN) would also be reduced through an adjustment factor of 0.5 (currently at 1.0)
- The potential impact…
- The stocks that may get impacted due to these changes may see some demand supply movements in the stock or may be a portfolio restructuring by the funds as their weightings would change in the index though it would be applicable from November 2011.
The changes are positive for SBI and Bharti where as ICICI bank may see some pressure.
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