MSCI Index
26-08-2023
01:37 PM
1 min read
Overview:
Rural Electrification Corporation Limited under the Ministry of Power, has secured a coveted place in the esteemed Morgan Stanley Capital International (MSCI) Global Standard Index, effective from 1st September 2023.
About MSCI Index
- It is owned by the multinational investment management and financial services company Morgan Stanley.
- It is an investment research firm that provides stock indexes, portfolio risk and performance analytics, and governance tools to institutional investors and hedge funds.
- It is a leading provider of critical decision support tools, including stock indexes, and services for the global investment community.
- MSCI indices facilitate the construction and monitoring of portfolios in a cohesive and complete manner, avoiding benchmark misfit. It has over 160,000 indices in its portfolio.
- MSCI has indexes for countries, regions, emerging markets, developed markets, small cap, all cap and even Islamic indexes.
- It selects stocks for its equity indexes that are easily traded and have high liquidity, with companies having high free float getting more weightage.
- It prefers stocks that have active investor participation, and are without owner restrictions.
What is MSCI India Index?
- The MSCI India Index is designed to measure the performance of the large and mid-cap segments of the Indian market.
- With 113 constituents, the index covers approximately 85% of the Indian equity universe.
- The index is reviewed quarterly.
Q1) What are Stock indexes?
Stock indexes, also known as stock indices, are measures that track the performance of a specific group of stocks in a financial market. These indexes provide a snapshot of how a particular segment of the stock market is performing over time.
Source: REC doubles Market Cap in one year, figures in MSCI Global Standard Index