MSCI Shakes Up India Smallcap Index, Tata Tech, Hexaware Get Boost

MSCI Reshuffles India Smallcap Index

Global index provider MSCI has made some big changes to its India Smallcap Index, adding 11 new stocks and removing 22 others. This shakeup has sent ripples through the market, with shares of some companies seeing significant gains.

Who’s In and Who’s Out?

Among the newcomers are notable names like Tata Technologies, Hexaware Tech, and ACME Solar. On the other hand, familiar faces like Aarti Drugs, Paisalo Digital, and Allcargo Logistics have been dropped from the index.

What Does This Mean for Investors?

These changes can have a major impact on the performance of the affected companies. JM Financial estimates that Tata Tech could see a passive fund inflow of around $16 million, while Hexaware is expected to gain about $15 million. This influx of money is a clear sign of investor confidence in these companies.

Market Reactions

The market reacted swiftly to the news. Shares of ACME Solar Holdings surged 6% higher, while Authum Investment jumped over 10%. IGIL also saw a notable increase, with its share price climbing 2.5%.

Looking Ahead

The changes to the MSCI India Smallcap Index will be implemented after market closing hours on May 30. It will be interesting to see how these companies perform in the coming months and if the initial boost in share prices continues.