MSCI India Index

Overview

The is a widely-tracked equity benchmark that measures the performance of large and mid-cap companies in India. It is a free-float, market capitalization-weighted index that includes companies from all industries. The index is maintained by Morgan Stanley Capital International (MSCI), a leading global provider of investment indices and analytics.

Composition

As of September 30, 2023, the comprised 98 constituents. The top 10 holdings accounted for approximately 40% of the index weight. The sector allocation of the index is as follows:

Sector	Weight
Financials	35.5%
Information Technology	20.2%
Energy	18.5%
Consumer Discretionary	11.5%
Materials	9.3%
Industrials	4.7%

Performance

The has provided investors with strong long-term returns. Over the past 10 years, the index has delivered an annualized return of approximately 9%. In recent years, the index has been buffeted by the COVID-19 pandemic and the global economic slowdown. However, it has rebounded in 2023 and is on track for a strong year.

Investment Considerations

The is a popular choice for investors seeking exposure to the Indian equity market. The index provides diversification across multiple sectors and companies, and it has a proven track record of delivering returns. However, investors should be aware of the risks associated with investing in Indian equities. These risks include political instability, currency fluctuations, and economic downturns.

Alternatives to the

There are several alternative indices that investors can consider for exposure to the Indian equity market. These indices include:

• Nifty 50 Index
• BSE Sensex Index
• S&P BSE 100 Index

Frequently Asked Questions (FAQs)

Q: What is the difference between the and the Nifty 50 Index?

A: The is a broader index that includes more companies than the Nifty 50 Index. The Nifty 50 Index is composed of the 50 largest companies by market capitalization in India.

Q: What is the minimum investment required to track the ?

A: There is no minimum investment required to track the . However, investors can choose to invest in exchange-traded funds (ETFs) or mutual funds that track the index.

Q: How often is the rebalanced?

A: The is rebalanced semi-annually, in May and November.

References

• Nifty 50 Index
• BSE Sensex Index
• S&P BSE 100 Index

MSCI India Country Classification

The MSCI India Country Classification defines India as an "Emerging Market" within the MSCI Market Classification Framework. This classification is based on various factors, including:

• Economic development: India’s large and rapidly growing economy
• Market accessibility: Liberalization of the Indian capital markets and increased foreign investment inflows
• Investment risk: India’s relatively high political and regulatory risks, as well as economic volatility
• Size and liquidity: India’s large and liquid stock market, which is among the top 10 globally

The MSCI India Country Classification plays a significant role in:

• Portfolio allocation: Global investors use it to determine the allocation of their investments to India
• Index construction: It determines the inclusion of Indian companies in MSCI indices, which are widely used by institutional investors
• Risk assessment: It helps investors assess the risks associated with investing in India compared to other emerging markets or developed markets

Chief Executive Officer of MSCI India

The Chief Executive Officer (CEO) of MSCI India is Umesh Desai. He is responsible for leading MSCI’s operations in India, which include developing and managing equity, fixed income, and alternative investment products and services. Desai joined MSCI in 2008 and has held various leadership positions within the company, including head of index research and analytics for the Asia Pacific region. He is based in Mumbai, India.

Performance

The is a widely followed benchmark of Indian equities. It comprises 101 companies representing over 85% of the free float market cap in India. The index has delivered impressive returns over the long term, but has faced headwinds in recent years.

• Strong Long-Term Performance: Since its inception in 1991, the has generated an annualized return of 11.6% in INR terms. This performance has been driven by economic growth, corporate earnings, and market reforms.
• Headwinds in Recent Years: In recent years, the index has faced challenges due to factors such as the COVID-19 pandemic, rising inflation, global geopolitical uncertainty, and domestic economic headwinds. As a result, it has underperformed global peers in 2022 and 2023.
• Outlook: The outlook for the remains mixed. The Indian economy is expected to recover in the coming years, supported by government reforms and infrastructure spending. However, global factors and domestic risks could continue to weigh on market sentiment. Investors should carefully consider these factors before making investment decisions.

MSCI India ESG Index

The MSCI India ESG Index is a stock market index that measures the performance of Indian companies with strong environmental, social, and governance (ESG) practices. The index is constructed by MSCI, a leading provider of financial indexes and data.

The index is designed to provide investors with a way to invest in Indian companies that are committed to sustainability and responsible business practices. The index includes companies from a wide range of sectors, including financials, energy, materials, industrials, consumer discretionary, and consumer staples.

Companies are selected for inclusion in the index based on their ESG performance, which is assessed by MSCI using a variety of criteria. These criteria include:

• Environmental: Climate change mitigation, water management, waste management, and biodiversity conservation
• Social: Labor relations, human rights, product safety, and community engagement
• Governance: Board structure, shareholder rights, executive compensation, and anti-corruption practices

The MSCI India ESG Index is a valuable tool for investors who are looking to invest in Indian companies that are committed to sustainability and responsible business practices. The index provides investors with a way to track the performance of ESG-oriented companies in India and to make informed investment decisions.

MSCI India Small Cap Index

The MSCI India Small Cap Index is a stock market index that tracks the performance of the smallest publicly traded companies in India. The index is maintained by MSCI Inc., a leading provider of financial data and research.

• Composition: The index includes companies that are listed on the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE) of India and have a market capitalization of less than $2 billion.
• Weighting: The index is weighted by the market capitalization of its constituent companies.
• Performance: The index has historically outperformed the broader Indian stock market, as small-cap companies tend to have higher growth potential.
• Sector Representation: The index is heavily weighted towards sectors such as financials, industrials, and consumer discretionary.
• Use: The MSCI India Small Cap Index is used by investors and fund managers to track the performance of small-cap stocks in India and to create diversified portfolios.

MSCI India Mid Cap Index

The MSCI India Mid Cap Index is a stock market index that tracks the performance of mid-capitalization companies in India. It is a free float-adjusted market capitalization weighted index and is designed to represent the mid-market segment of the Indian equity market. The index is calculated by dividing the sum of the market capitalizations of all eligible companies by the sum of the free float market capitalizations of all eligible companies. The index is rebalanced on a semi-annual basis and is published by MSCI Inc.

MSCI India Growth Index

The MSCI India Growth Index is a stock market index that tracks the performance of large and mid-cap growth companies listed on the Indian stock exchanges. It is designed to represent the growth-oriented segment of the Indian equity market.

The index includes companies that exhibit:

• High revenue and earnings growth potential
• Strong competitive advantages
• Market-leading positions in their respective industries
• Sound financial fundamentals

The MSCI India Growth Index is widely used by investors and fund managers to benchmark their performance and track the broader market trend. It provides a comprehensive view of the growth-oriented companies in India and serves as a valuable tool for evaluating investment opportunities in the Indian stock market.

MSCI India Value Index

The MSCI India Value Index is a stock market index that measures the performance of value stocks in the Indian market. It is designed to represent the large and mid-cap segments of the Indian stock market and includes companies that are considered undervalued relative to their fundamental characteristics, such as earnings, book value, and cash flow. The index is widely used by investors as a benchmark for tracking the performance of value-oriented investment strategies in India.

MSCI India Dividend Yield Index

The MSCI India Dividend Yield Index is a market capitalization-weighted index that represents the performance of the highest dividend-yielding stocks in the Indian stock market. The index is designed to track the performance of companies that consistently pay dividends to their shareholders. The index is calculated using a free float-adjusted market capitalization weighting, which means that the size of a company in the index is proportional to the amount of its shares that are available for trading by the public. The index is reviewed and reconstituted on a quarterly basis.

MSCI India Healthcare Index

The MSCI India Healthcare Index is a composite index that tracks the performance of publicly traded companies in India’s healthcare sector. It is a free-float, market-capitalization-weighted index that includes companies engaged in pharmaceuticals, biotechnology, healthcare equipment and supplies, hospitals, and other healthcare-related industries. The index is designed to provide investors with a comprehensive measure of the performance of the Indian healthcare sector.

MSCI India Industrials Index

The MSCI India Industrials Index is a stock market index that tracks the performance of the largest and most liquid industrial stocks listed on the Indian stock exchanges. It is designed to represent the performance of the industrial sector of the Indian economy. The index is calculated using the free-float market capitalization methodology and is weighted by the market capitalization of each constituent. It includes companies from various industries such as capital goods, construction, manufacturing, transportation, and utilities. The index is used by investors and fund managers to track the industrial sector performance and to create investment portfolios that track the industrial sector of the Indian economy.

MSCI India Information Technology Index

The MSCI India Information Technology Index is a stock market index that tracks the performance of the largest and most liquid information technology companies listed on the Indian stock exchanges, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The index is designed to measure the performance of the Indian information technology sector, which includes companies involved in software development, IT services, hardware manufacturing, and outsourcing.

The index is free-float market-capitalization weighted, meaning that the weight of each company in the index is proportionate to its market capitalization and the number of shares available for public trading. The index is reviewed and adjusted on a quarterly basis to ensure that it reflects the current composition of the Indian information technology sector.

The MSCI India Information Technology Index is widely used by investors to track the performance of the Indian information technology sector and to make investment decisions. The index is also used as a benchmark for the performance of Indian information technology companies and for comparison with other global information technology indices.

MSCI India Financials Index

The MSCI India Financials Index is a free float-adjusted market capitalization weighted index that represents the performance of India’s large and mid-cap financial sector companies.

The index includes companies from various segments of the financial industry, such as:

• Banks
• Non-Banking Financial Companies (NBFCs)
• Insurance Companies
• Asset Management Companies

The MSCI India Financials Index serves as a benchmark for investors seeking exposure to India’s financial sector and is widely tracked by fund managers and analysts to monitor the performance of this crucial segment of the Indian economy.

MSCI India Real Estate Index

The MSCI India Real Estate Index is a market capitalization-weighted equity index that measures the performance of publicly traded real estate companies in India. The index includes companies from various sectors of the Indian real estate market, such as residential, commercial, and industrial. The index is designed to provide a comprehensive view of the Indian real estate market and is used by investors to track the performance of the sector and make investment decisions.

MSCI India Consumer Discretionary Index

The MSCI India Consumer Discretionary Index is a market-capitalization-weighted index that measures the performance of Indian consumer discretionary stocks. The index includes companies that derive at least 50% of their revenues from consumer discretionary activities, such as restaurants, hotels, leisure, and auto manufacturing. The index is designed to provide investors with exposure to the growing Indian consumer market.

Key Features:

• Includes 198 companies listed on the Bombay Stock Exchange and National Stock Exchange
• Weighted by free float market capitalization
• Rebalanced quarterly

MSCI India Energy Index

The MSCI India Energy Index is a stock market index that tracks the performance of Indian companies in the energy sector. The index is composed of 10 constituents, which include oil and gas companies, power generation companies, and renewable energy companies.

The index is weighted by market capitalization, with the largest companies having the greatest impact on the index’s performance. The index is used by investors to track the performance of the Indian energy sector and to make investment decisions.

The MSCI India Energy Index has performed well in recent years, as the Indian government has focused on increasing energy production and reducing dependence on imports. The index is expected to continue to perform well in the future, as India’s energy demand is expected to grow rapidly in the coming years.

MSCI India Materials Index

The MSCI India Materials Index is a stock market index that measures the performance of companies in the materials sector in India. The index is composed of companies that are listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE) and are involved in the production, processing, and distribution of materials such as metals, mining, chemicals, and construction materials.

The MSCI India Materials Index is a widely used benchmark for investors looking to track the performance of the materials sector in India. The index is calculated using a free-float market capitalization-weighted methodology, meaning that the largest companies in the index have a greater influence on its performance.

The MSCI India Materials Index has a history of providing investors with strong returns, outperforming the broader in many years. However, the index is also subject to volatility, as the materials sector is cyclical and can be impacted by factors such as economic growth, commodity prices, and currency fluctuations.

MSCI India MSCI India Infrastructure Index

The MSCI India MSCI India Infrastructure Index is a market capitalization-weighted index that measures the performance of companies in the Indian infrastructure sector. The index is composed of companies that are involved in the construction, operation, and maintenance of infrastructure assets, such as roads, railways, airports, ports, and utilities.

The index is designed to provide investors with a comprehensive representation of the Indian infrastructure sector. It is a valuable tool for investors who are looking to gain exposure to the Indian economy and the growth potential of the infrastructure sector.

The index is calculated on a daily basis and is published by MSCI, a leading provider of investment indices. The index is widely used by investors around the world as a benchmark for the Indian infrastructure sector.

Chief Executive Officer of MSCI Singapore

The Chief Executive Officer (CEO) of MSCI Singapore holds a pivotal leadership role within Morgan Stanley Capital International (MSCI), a leading provider of investment indexes and analytics. The CEO is responsible for driving MSCI’s growth and strategic direction in Singapore, overseeing operations, client relationships, and the execution of MSCI’s mission to empower investors to build better portfolios.