The MSCI has made some critical changes in its May 12 meeting. The MSCI index is important as it is the basis for billions of dollars of passive allocation into India. Here are the highlights of the changes made.

· MSCI India Index will see addition of 6 stocks; Abbott India, IPCA Laboratories, Jubilant Foodworks, Power Finance Corporation, Tata Consumer Products and Torrent Pharmaceuticals. The five stocks that will be removed are Ashok Leyland, Bank of Baroda, Cummins India, M&M Financial Services and Tata Power.

· MSCI India Domestic Small Cap Index will add 13 scrips including Amber Enterprises, Ashok Leyland, Cummins India, Emami, Future Retail, GMM Pfaudler, IndiaMart, M&M Financial Services, Mishra Dhatu Nigam, Nippon Life India, NLC India, Relaxo Footwear and Tata Power. Some of the key names to be removed are Abbott India, Adani Green Energy, Ashoka Buildcon, BSE, Chennai Petroleum, Dish TV, Eclerx Services, Future Consumer, Equitas Holdings, GSFC and HFCL.

The changes announced in this Semi-Annual Index Review for the MSCI Equity Indexes will be effective from May 29, 2020. Unofficial estimates peg the resultant net inflow of $143 million into passive benchmarked funds.