A re-rating, expected to be announced in the first quarter of calendar 2005, may see India's weight in the index go up from 5.2 per cent to around 6 per cent.
Analysts familiar with the processes used by MSCI in identifying stocks to include in the emerging markets index said Indian Oil Corporation, Bharti Tele-Ventures, National Thermal Power Corporation and Steel Authority of India were likely to be included.
A re-rating of India's weight in the index was expected last year but did not materialise. In the last quarterly review of the emerging markets index in November 2004,
Andrew Holland, chief administrative officer and executive vice-president, research, DSP Merrill Lynch, said, "The substantial flow of foreign money in the equity markets will see a natural re-rating."
He pointed that the increased weight would lead to a higher inflow of assets to the Indian market by fund managers, who base their allocations on the MSCI.
Though these are the top four Indian companies in terms of market capitalisation, they have not been included in the index, primarily because of their low floating stock. India's weight in the MSCI-MI may go up further when these companies make further capital issues.
