Business Today

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index

FTSE's move includes Eicher Motors, Motherson Sumi Systems, Zee Entertainment Enterprises, Godrej Consumer Products, Aurobindo Pharma, Shree Cement and Cadila Healthcare.

Abhishek Vishnoi   Mumbai     Last Updated: March 5, 2015  | 15:36 IST
FTSE adds 9 Indian firms as large-caps in Asia-Pacific ex-Japan index
(Photo: Reuters)

FTSE Group, the British stock market index provider, has added Bosch and raised the shares of eight other Indian companies, including YES Bank, to large-caps from mid-cap earlier in its Asia Pacific ex-Japan index.

FTSE's changes, which came after a semi-annual review of indices, may lead to net inflows of nearly US $150 million in domestic shares and may help soothe worries about huge India overweight positions after a potential rise in the country's weighting by peer MSCI, traders said.

FTSE's move, which will be effective after markets close on March 20, also includes Eicher Motors, Motherson Sumi Systems, Zee Entertainment Enterprises, Godrej Consumer Products, Aurobindo Pharma, Shree Cement and Cadila Healthcare.

The government's budgetary proposal to make no distinction between foreign direct investment (FDI) and foreign portfolio investment (FPI) is expected to raise the country's weight in MSCI indexes.

Companies often see demand for their shares rise or fall after promotion or exclusion from indices, primarily due to funds tracking the indices in question or using them as benchmarks, analysts say.

In its review, FTSE also upgraded domestic consumption related stocks such as Pidilite Industries, Britannia Industries and Marico to mid-cap series from small-cap earlier.

(Reuters)

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close